Governor of Bank Indonesia (BI) Perry Warjiyo is optimistic that there would be less pressure on Rupiah in 2019, globally and domestically. He said one factor to reducing the pressure on rupiah in 2019 is that the US Federal Reserves (Fed), would not raise its fund rate as many times as this year.
This year the Fed raised its fund rate four times and twice next year, also once in 2020. In addition the global condition is expected to improve in 2019 as portfolio investors would return to the emerging countries to invest.
Warjiyo stated, global investors would not likely keep cash in their hand. They would return to the market in developing countries including Indonesia. He believes, efforts by the government in reducing the current account deficit is expected to show result in 2019.
