ID :
70843
Fri, 07/17/2009 - 20:08
Auther :
Shortlink :
https://www.oananews.org//node/70843
The shortlink copeid
RUPIAH TUMBLES FOLLOWING EXPLOSIONS IN JAKARTA
Jakarta, July 17 (ANTARA) - The rupiah tumbled against the US dollar at the Jakarta interbank spot market here early Friday following explosions which killed at least six persons and injured tens of others in two hotels in Jakarta.
The local currency traded at Rp10,165-Rp10,175 per US dollar, down 75 points from Rp10,090-Rp10,105 at the market's close a day earlier.
Edwin Sinaga, a domestic money market observer, said that hopefully the explosions which claimed several lives would not affect foreign investors' wish to enter the domestic market.
Foreign investors were expected to increase their investments in Indonesia in an effort to boost the national economy, he said.
According to him the bomb explosions were 'a therapy' for the next administration expected to announce a new cabinet line-up.
"We are optimistic that it is temporary in nature, although it has affected the rupiah which plunged," he said.
However, he believed that the rupiah would not move far from the the range between Rp10,000 and Rp10,200 per US dollar as Bank Indonesia (BI, the country's central bank) would stay in the market to monitor the local currency's movement.
BI had earlier also entered the market to prevent the rupiah from surging too rapidly because it could affect the country's exports, he said.
Especially because the commodity prices at the export markets tended to decrease, because a number of countries lessened their imports, he said.
Foreign investors, according to him, would still be active in the domestic market, because Indonesia was still an attractive country in Asia.
They had actually expressed their interest in placing their funds in Indonesia, following a successful, smooth and peaceful presidential election which was held last July 8, 2009, he said.
The presence of foreign investors in Indonesia was very much needed to boost the country's economic growth rate to seven percent, he said. ***
The local currency traded at Rp10,165-Rp10,175 per US dollar, down 75 points from Rp10,090-Rp10,105 at the market's close a day earlier.
Edwin Sinaga, a domestic money market observer, said that hopefully the explosions which claimed several lives would not affect foreign investors' wish to enter the domestic market.
Foreign investors were expected to increase their investments in Indonesia in an effort to boost the national economy, he said.
According to him the bomb explosions were 'a therapy' for the next administration expected to announce a new cabinet line-up.
"We are optimistic that it is temporary in nature, although it has affected the rupiah which plunged," he said.
However, he believed that the rupiah would not move far from the the range between Rp10,000 and Rp10,200 per US dollar as Bank Indonesia (BI, the country's central bank) would stay in the market to monitor the local currency's movement.
BI had earlier also entered the market to prevent the rupiah from surging too rapidly because it could affect the country's exports, he said.
Especially because the commodity prices at the export markets tended to decrease, because a number of countries lessened their imports, he said.
Foreign investors, according to him, would still be active in the domestic market, because Indonesia was still an attractive country in Asia.
They had actually expressed their interest in placing their funds in Indonesia, following a successful, smooth and peaceful presidential election which was held last July 8, 2009, he said.
The presence of foreign investors in Indonesia was very much needed to boost the country's economic growth rate to seven percent, he said. ***
