Jakarta: Coordinating Minister for Economic Affairs Darmin Nasution is optimistic that the rupiah could reach Rp13,000 per US dollar level.
"The rupiah could reach Rp13,000 per US dollar level. It could achieve that level," Darmin told reporters on Friday.
"So we have to improve our economic fundamentals. That is why we need to reduce our current account deficit," he added.
The central bank decided to raise its 7-Day Reverse Repo Rate by 25 basis points (bps) to 6.00 percent this month. It also increased the Deposit Facility (DF) and Lending Facility (LF) rates by 25 bps to 5.25% and 6.75% respectively.
In order to maintain flexibility and distribution of liquidity in the banking industry, BI raised the average reserve requirement from 2% to 3%. Besides that, it also increased the macroprudential liquidity buffer that can be repoed to Bank Indonesia from 2% to 4%.
"The decision reflects Bank Indonesia’s ongoing efforts to lower current account deficit within a manageable threshold," BI said in a written statement received by Medcom.id.
"The policy rate hike is also aimed at strengthening the attractiveness of domestic financial markets by anticipating global policy rate hike in the next few months," it said.