Positive policies and projections of the Indonesian economy are the capital to gain investor trust. This, among others, is seen in the rupiah exchange rate.

With the decline in the Fed’s influence on the stability of the rupiah exchange rate, BI's monetary policy can focus more on controlling inflation while continuing to encourage national economic recovery.

The policies of Bank Indonesia and the government have not been able to bring a positive sentiment to the market. The rupiah hovered at around Rp 14,900 per US dollar in the past three days, indicating that external factors affected the domestic financial market.

Have you ever heard the adage l\'histoire se repete (history repeats itself)? Perhaps that is what we are experiencing at present. For example, Indonesia again hosted the 18th Asian Games, in which both the event and the athlete\'s achievements were a great success: Indonesia finished fourth best in Asia.

The Indonesian currency has been fluctuating between Rp 14,800 and Rp 14,900 per US dollar for the past two weeks. As the solution, BI needs to immediately raise the benchmark interest rate in order to halt the outflow of foreign funds and lure them back into the country.

The rupiah’s weakening against the United States dollar has affected the domestic pharmaceutical industry, which imports around 90 percent of its raw ingredients. The imports of raw ingredients had always burdened pharmaceutical company.

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.

The rupiah has plunged even deeper. In addition to negative sentiment from external factors as the main cause behind the fall, domestic factors also play a part in the sharp depreciation of the Indonesian currency.