BI boss: Rupiah is stable, but we remain cautious of the US economy

Governor of Bank Indonesia (BI), Agus Martowardojo said he was happy to see the rupiah exchange rate against the United States Dollar (USD) is relatively stable in 2017. According to Agus, the rupiah throughout 2017 is up 1.5 percent and its volatility is maintained.

We also see in 2017 year to date the rupiah actually appreciated 1.5 percent and we see its volatility maintained so relatively stable, "said Agus at the University of Indonesia (UI), Depok, Wednesday (20/9).

He said that if the Rupiah exchange rate is stable, it will be very good for business development and planning. It will also be good for fixed inflation.

Nevertheless, according to Agus, Indonesia should not be careless and must remain cautious economic developments in the United States (US). "They will raise rates by 2017, this is likely to have decreased but the direction is indeed their economy is improving," he said.

Agus continued, the current US consumption figures below expectations and targets, as well as investment is also small. Because, initially world oil prices have reached USD 52 per barrel but it turned out to be lower.

"So we still have to be wary if the Fed rate is rising it we know at least 3 times in 2018 and in 2019 also twice will happen," said Agus.