Measures Insufficient Amid Global Turmoil

The rupiah exchange rate has fallen 7 percent since January. The government has prepared a number of measures to halt the rupiah’s fall against the US dollar. However, the measures will unlikely be able to deal with the dynamics of the global economy.

KOMPAS/RADITYA HELABUMI

Consumers and booth attendants try out smartphones on Wednesday (5/9/2018) at the ITC Roxy Mas electronic center in Jakarta. The prolonged rupiah depreciation has prompted an increase in the price of electronics, including smartphones.

JAKARTA, KOMPAS – The government has prepared a number of measures to halt the rupiah’s fall against the US dollar. However, the measures will unlikely be able to deal with the dynamics of the global economy.

The rupiah fell even deeper on Wednesday (5/9/2018), dropping to 14,927 per US dollar according to the Jakarta Interbank Spot Dollar Rate (JISDOR). The rupiah has recorded its lowest level to date for the last four days. According to Bloomberg, the currency is trading at Rp 14,925 to Rp 14,940 per US dollar on the spot market.