Will Global Economic Crisis Affect Rupiah?

Jumat, 16 September 2011 - 15:00 WIB

Oleh :

Rupiah

Sumber :

VIVAnews/Nurcholis Anhari Lubis

VIVAnews - The impact of the economic downturn in the United States and Europe may likely spread over the countries around the globe including Indonesia.

"The crisis may affect the world in the long run. It is also possible that it may be worse than worse than that in 2008," said Farial Anwar, a market observer, today. "So far the U.S. and Europe have yet to find a solution to overcome their crisis. This is very dangerous situation."

Farial said the warning about the size and effect of the global crisis has confused investors, including those who invest in Indonesia. It is natural that capital outflow took place a few days ago, causing the Rupiah to depreciate.

"Foreign investors did massive and sudden reversal. They avoided chipping in high-risk investments as they viewed the Asian market would be facing a hard time," he said.

In the foreign exchange market, the Rupiah exchange rate this morning has appreciated to Rp8,785 against US dollar compared to some days earlier at Rp8,900 against US dollar. This was a sharp plunge taking into account the level in early September at between Rp8,500 and Rp8,600 against US dollar.

According to Farial, the Indonesian capital market has witnessed bubble, causing the composite stock price index (IHSG) to reach 4,000. "Investors were distressed. They opted to withdraw [invetsments] from Indonesia," he explained.

Farial continued concerns should be aimed at export destination countries as the global crisis would result in lower demand for more goods.

"If the hurdles in export destination countries remain, export demands will decline and the number of the unemployed will rise. National economy would be seriously affected," he said.