RUPIAH REMAINS AT PREVIOUS DAY'S POSITION DESPITE POSITIVE SENTIMENT

Jakarta, Nov. 17 (ANTARA) - The rupiah remained at its previous day's level of below Rp9,400 per US dollar in the Jakarta interbank spot market here on Tuesday morning despite positive sentiment in the domestic market.

The Indonesian currency traded at p9,380-Rp9,395 per US dollar, or at the same level as when the market closed a day earlier.

The domestic market was still positive toward the rupiah following a report from the Central Bureau of Statistic that the economic growth in the fourth quarter of 2009 was recorded at 4.2 percent, according to Rully Nova, a foreign exchange analyst of PT Bank Himpunan Saudara Tbk.

An economic growth of 4.2 percent was quite sound, he said, adding, however, that the government should further intensify development, especially in the infrastructure and electricity sectors in order to encourage foreign investors to invest more in the country, he said.

He urged the government to look for an alternative to speed up the process of electricity and infrastructure development to further encourage economic growth.
The current position of the local currency was good, in fact it should have further strengthened if there was no report from the finance ministry informing that Indonesia's export growth rate had declined by 19 percent, he said.

He predicted that it would be difficult for the rupiah to reach the level of Rp9,200 to Rp9,300 per US dollar.

Demand for the US dollar was expected to be high as corporations would need the greenback to pay their maturing debts, he said.