Sri Mulyani reveals reasons for putting IDR 16,100 in US dollars in 2025 RAPBN

Jakarta –

Finance Minister Sri Mulyani Indrawati explained that the US dollar forecast in the Draft State Revenue and Expenditure Budget (RAPBN) is IDR 16,100. This was also clarified by various groups of the People’s Representative Council (DPR) at the last Plenary Meeting.

Sri Mulyani said the prediction emerged after seeing how global and domestic situations were filled with uncertainty. As in the past six months, uncertainty has suddenly affected the rupiah exchange rate and all currencies in the world.

“Regarding the rupiah exchange rate, the government appreciates the group’s opinion regarding the assumption that the exchange rate is pegged at IDR 16,100 per US$, and the interest rate on 10-year securities at 7.1 %. has given a really amazing learning, 3 months ago “Seeing that the rupiah with currencies around the world is suffering heavy depreciation pressure, in the last two weeks we have the rupiah to see it is very strongly appreciated,” said Sri Mulyani at the DPR RI plenary meeting regarding the APBN Bill for Fiscal Year 2025, Tuesday (27/8/2024).

According to him, the conditions that have occurred in the past six months show that there is an influence of global factors, especially from developed countries, which have an impact around the world.

“However, at the same time the rupiah is supported by the fundamentals of the Indonesian economy, especially the balance of payments perspective. Therefore, the export current account deficit is very important and it depends on productivity and the competitiveness of our economy,” he explained.

“On the other hand, the macroeconomic base, especially from the fiscal side, provides credit that is able to attract capital flows again in times of uncertainty,” he said.

Regarding the US dollar, Sri Mulyani opened up if she wanted to have a discussion, especially on the very dynamic situation from the global and domestic side.

“Therefore, we appreciate discussing the exchange rate and the yield of government securities, especially in the dynamic situation from a global and domestic perspective,” he explained.

Previously, several groups appreciated the forecast of the US dollar in 2025 RAPBN However, the Indonesian Democratic Party (PDIP) criticized the exchange rate of the rupiah against the US dollar in RAPBN 2025, which was assessed at the rate of 16,100 IDR.

“Currently the exchange rate of the rupiah against the US dollar is IDR 15,700/US$. Instead the government is set at IDR 16,100/US$ in 2025,” said a member of the DPR RI from the PDIP Fraction, Adisatrya Suryo Sulisto in the plenary meeting of the DPR RI for the 2024-2025 session, Tuesday (20 /8/2024).

According to him, this estimate is not in line with the government’s efforts to strengthen the rupiah exchange rate against the US dollar.

“The weakening of the rupiah is not in line with our efforts so far to strengthen the rupiah exchange rate and the trend in easing global monetary policy, especially the Fed in 2025,” he continued.

(yes/have)