Monday, 23 September 2019 | 01:08 WIB

Rupiah Edges Down Ahead of 2019 Presidential Election Result Announcement

Rupiah Edges Down Ahead of 2019 Presidential Election Result Announcement (special)

JAKARTA, NETRALNEWS.COM - Rupiah exchange rate at the interbank level in Jakarta is closed on the decline on Monday ahead of the announcement of the results of the 2019 Presidential Election. The rupiah weakened by five points or 0.03 percent to IDR 14,455 per US dollar from the previous position of IDR 14,450.

"The market awaits the results of the presidential election which will be announced by the Indonesia General Election Commission (KPU) on May 22. This also helped investors get to the wait and see mode with the chosen candidate pair and what the cabinet would look like," said PT Garuda Berjangka President Director Ibrahim Assuaibi in Jakarta on Monday.

Ibrahim said, who will be the leader and representative of the people in the next five years will be bright next Wednesday. But getting closer to the day of the election result announcement, the situation was not calm but even more noisy.

The stronghold of the presidential and vice-presidential candidate Prabowo Subianto-Sandiaga Uno continued to voice in the election so the results were invalid, meaning that there was delegation to the KPU's decision. Plans for massive mass action on May 22, 2019 were also widely heard, even the police sniffed terror efforts that would ride on the action.

From externally, tensions in the Middle East are feared to affect oil prices. If the conflict is prolonged, it can hamper the supply of black gold from the area. The Middle East is the largest oil-producing region in the world, so that when the supply from there decreases, prices can rise significantly.

If this trend continues, Ibrahim continued, then it could be a bad address for the rupiah. Because the increase in oil prices will make the cost of importing these commodities more expensive. Even though Indonesia inevitably has to import oil to meet domestic needs because production is not yet adequate.

"That is, there will be pressure on the trade balance and current account. As mentioned earlier, this is not good news for the rupiah and assets based on the currency of the country," Ibrahim said as quoted by Antara.

The rupiah opened at the level of IDR14,450 per dollar in the morning. Throughout the day, the rupiah moved in the range of IDR 14,450  to IDR 14,460 per dollar.

Meanwhile, Bank Indonesia's middle exchange rate on Friday showed that the rupiah weakened to IDR 14,478, as compared to the previous day at IDR 14,469 per dollar.