Thursday, 09 April 2020 | 03:27 WIB

Rupiah Strengthens as Indonesian Gov’t Launches Economic Stimulus

Rupiah Strengthens as Indonesian Gov't Launches Economic Stimulus (special)

JAKARTA, NETRALNEWS.COM - Rupiah exchange rate at the interbank level in Jakarta is closed rising 195 points or 1.18 percent to IDR16,305 per US dollar from the previous position of IDR16,500 per US dollar. The rupiah gain was driven by the Indonesian government's stimulus amid the covid-19 coronavirus outbreak.

"The flood of stimulus launched by the government has become a positive sentiment for the Indonesian currency so that it can revive investors' confidence to collect risky assets, along with hopes that the economic slowdown due to COVID-19 can be limited," said Director of PT TRFX Garuda Berjangka Ibrahim Assuaibi in Jakarta on Thursday (03/26/2020).

The government has issued out some of the stimulus that had been announced previously, and strengthened by Presidential Decree, such as direct cash assistance and one-year incentive pause for credit installments.

Externally, the markets are anxiously waiting for a USD 2 trillion stimulus package to offset the economic impact of the COVID-19 pandemic. However, there are already indications that some US states will need more money for medical supplies, as the health care system is struggling to cope with the jump in the number of patients.

The White House and congressional leaders say they have approved a massive stimulus bill to ward off the economic slowdown caused by the COVID-19 outbreak.

Meanwhile, weekly US unemployment claims scheduled for Thursday are expected to increase to around one million, well above the peak of the number of unemployed previously seen during the last global financial crisis.

Some analysts say jobless claims could even exceed one million because companies are expected to quickly reduce workers.

As reported by Antara, the rupiah was opened higher at IDR16,205 per US dollar in the morning. Throughout the day, the rupiah moved in the range of IDR16,205-IDR16,350 per US dollar.

Meanwhile, Bank Indonesia's middle rate on Thursday showed that the rupiah strengthened to IDR16,328 per US dollar, as compared to the previous day's position of IDR16,486 per US dollar.