REPUBLIKA.CO.ID, JAKARTA -- The Indonesian rupiah closed stronger at Rp13,095 per dollar in the Jakarta inter-bank spot market on Wednesday evening, up 19 points from the previous close of Rp13,114.

The rupiah continued its rally against the dollar after Indonesia's balance of trade in March 2016 recorded a surplus, money market observer Rully Nova of Bank Himpunan Saudara said here on Wednesday.

Capital inflows have continued into the Indonesian market, especially through government bonds, fueled by positive domestic economic fundamentals, he said.

Data from the Directorate General of Financing and Risk Management showed foreign holding of government bonds rose to Rp613.39 trillion as of April 11, 2016, compared to Rp558.52 trillion at the end of last year.

In the meantime, Bank Indonesia (the central bank) always remained present in the market to ensure that the rupiah's exchange rate against the dollar will remain stable, he said.

Hopefully, the rupiah's stable exchange rate will boost the Indonesian economy, he said.

On the external side, expectation that the Fed will only raise its fund rate twice this year compared to four times last year has prompted investors to invest in developing countries' assets, he said.

"The global economic slowdown is one of the factors causing the US Federal Reserve to send a signal that it will not raise its rate aggressively," he said.

NH Korindo Securities Indonesia Chief Researcher, Reza Priyambada, said on Tuesday the rupiah, which stayed in a positive zone, is also inseparable from the global oil prices which are still at a psychological level.

WTI crude rose to US$40.81 per barrel and Brent crude went up to US$44.23 per barrel.

"The oil price hike has had an impact on commodity contracts, thus giving a chance to the rupiah to move in a positive direction," he said.

According to Bank Indonesia mid rate on Wednesday, the rupiah traded at Rp13,096 per dollar, up 27 points from Rp13,123 the day before.

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