Jakarta, CNBC Indonesia – The rupiah exchange rate collapsed in today’s trading session, Monday (23/10/2023). Reporting from Refinitiv, the rupiah broke through the psychological level of IDR 15,900/US$, weakening 0.19% and even in the middle of trading, it touched IDR 15,914/US$. The current position of the rupiah is the weakest since April 8 2020 or around the last 3.5 years.

This condition is increasingly worrying because Indonesia will face a democratic election in 2024.

“Well, that’s our joint task after we officially register ourselves. Our hope is that this stage of the presidential election (presidential election) process will have open and closed campaigns. We hope that the Timses (success team), political elites will create a safe and conducive situation, so that it doesn’t disturb the climate. our investment and trade,” said Deputy Chairman of the Indonesian Chamber of Commerce and Industry for Regional Autonomy Development Sarman Simanjorang to CNBC Indonesia, Monday (23/10/2023).

“This is fundamental because the rupiah exchange rate is influenced internally, especially campaigns. There should be no friction that creates chaos. This must be avoided because it further weakens the value of the rupiah. So how do we focus on facing global economic challenges, the impact on our rupiah economy, but domestically “We have to make sure. Even though it is in the election stage, we make sure that conditions are safe and conducive and do not disrupt the business world and businesses,” he continued.

The weakening of the currency exchange rate not only occurred in the rupiah, but also in other currency exchange rates. Geopolitical uncertainty has a big influence on currency exchange rates, including the Israel-Hamas conflict.

“I don’t think the value of the rupiah is the worst, but the Ringgit is also the weakest in history at the moment. So other countries’ currencies are experiencing the same thing. The impact of the global economy, the Israeli Hamas war, American economic policy, this is really disturbing our financial principles which lend money from Indonesia “That’s the same in dollars,” said Sarman.

For this reason, he added, the government needs to take concrete steps to save the rupiah exchange rate, including methods other than raising the interest rate to 6%. If not, people’s purchasing power will increasingly be threatened.

“We hope that the government, especially the relevant ministries, OJK, BI, Ministry of Finance, will carry out synergy, especially in terms of the value of our rupiah, it will not weaken too sharply. If it is prolonged, it will affect our people’s purchasing power because it will result in rising prices of goods,” said Sarman.

[Gambas:Video CNBC]

(dce)