The Rupiah again became a victim of market trading brutality, especially those coming from Europe, China and the US. The pressure from world trade on the Rupiah exchange rate is still too great in 2023, and they believe market uncertainty will exist in 2023.

The Senior Institute for Development of Economics and Finance economist, Nawir Messi, said that the pressure from the US dollar on the exchange rates of many world currencies would occur during 2023. 

He also explained that this was exacerbated by rumours of a German-French conflict. The strong potential for conflict between China and Taiwan also triggered the magnitude of uncertainty experienced by Indonesia. 

That possibility doesn't disappear, let alone Taiwan, which we strengthen. This adds complexity from a global economic perspective throughout 2023. With this note, he said that the Rupiah itself could fall and continue to weaken. 

From the strength of the US dollar to continue until the end of the year, and in 2023 there will be a more significant margin because the global trend, which continues to experience uncertainty, continues to fluctuate.

The Rupiah is Expected to Drop If Economic Conditions Continue Like This, Today Touching The Level Of 15,616 Per Dollar

On Thursday night, the Rupiah opened trading by strengthening 0.1% against the US dollar. But until the closing of the Market, Rupiah was traded in the range of Rp. 15,616 per US Dollar. 

This value means that the Rupiah has weakened by around 0.16%, and Indonesia's economy could crash. So this adds to the signal of an increasingly vital recession. It was stated that among world economic indicators, trade has prospects that are far ahead. 

The wheel of business will also experience a slowdown, and when that happens, the price of the world economy will continue to fall. Furthermore, this sudden recession signal is the key to movement.

If the Indonesian Rupiah continues to move below the average, the opportunity for further strengthening is considered lost. Furthermore, the ability to penetrate the consistent level of the Rupiah is considered further this week.

Yet according to Faisal Basri, Senior Economist at the Institute for Development of Economics and Finance (INDEF), he said that export performance in Indonesia was quite good. But seeing the weakening Rupiah exchange rate, this is different from the prediction.

Faisal Basri also said that many Indonesian commodity sectors had been successfully exported. This makes the trade balance move to the right level, creeping up. However, what happened was a negative outlook for the Rupiah.

With the weakening of the Rupiah exchange rate to Rp. 15,616, the payroll is even more unpredictable. There are several indicators, but the Fed is the most central. 

The Market Waits for US Employment Data, Bank Indonesia, Finance Minister, and the President Hopes Indonesia Doesn't Become a Victim of Inflation and Recession

Until Thursday's market closing, the Rupiah exchange rate weakened, driving sentiment more dominantly from abroad. The rupiah exchange rate against the US dollar is said to be because the Market is waiting for US employment data.

Employment data in December is an essential indicator for economists from various parts of the country to determine what policies can be taken to make currency markets more stable in trading against the US Dollar so that it does not fall further.

Meanwhile, the finance minister from Indonesia has started to prepare a state budget for efforts to make prices more stable. This is also a step so that Indonesia can control inflation. The Ministry also has a target to maintain inflation at 5.5.

Besides that, the Indonesian president, Joko Widodo, also said he had great hope that the global recession would not affect Indonesia. He stated that his resolution for 2023 was for Indonesia to survive the year of economic challenges.

The national economy of Indonesia drives the optimism of economic players to improve the real economy sector and review the current conditions. As noted by economists, the Rupiah still has to survive the brutality of the US, China and Europe.