The Rupiah exchange rate has the potential to strengthen since Monday's trading starting May 8. April 2023, foreign exchange reserves are also expected to continue the positive trend.

So that this positive movement will support the continued strengthening of the dollar with optimism from ministers. DCFX Futures Chief Analyst Lukman Leong said: "The Rupiah was able to strengthen amid the weakening US dollar.

This is based on fears of a banking crisis in the US. Meanwhile, Indonesia's GDP data is expected to experience a yoy growth of above 5%. Lukman Leong said that the Rupiah has the potential to strengthen because it is supported by sentiment.

The country's foreign exchange reserves are expected to rise to US$ 146 billion. So trading week two will continue the positive trend of the week. One economist said that the projected movement of the Rupiah would move from IDR 14,650 to 14,750 per US dollar.

Meanwhile, there is also a possibility that the Rupiah will move into the field of Rp. 14,550. And this is also based on projected economic growth in the first quarter.

First Week of May Trading Supported By Positive 1Q Moves

The US dollar exchange rate against the Rupiah this week is at the level of IDR 15,658. This strengthening is shown by the RTI chart, which is also supported by an increase in interest rates by 25 basis points.

The Fed said that the US basis point was in the range of 5% to 5.25%. The Fed will be the main subject that influences the movement of the Rupiah in the future.

Luckily, Indonesia's inflation has been in a controlled zone. And this is what makes Rupiah the best currency in Asia and number 3 in the world.

On the other hand, Bank Indonesia reported that the flow of foreign capital leaving the Indonesian financial market reached 950 billion Rupiah in 3 trading days, from 2-5 May. This domestic financial market shows that many transactions are taking place now.

In his statement, the Head of the Bank Indonesia Communication Department, Erwin Haryono, explained that the net selling value was IDR 550 billion and IDR 400 billion on the stock market.

"BI continues to strengthen coordination with the government and authorities regarding how to optimize strategy. Policies to maintain macroeconomic stability and the financial system to make a further economic recovery," said the Head of the BI Communication Department.

Various domestic and international problems still overshadow Indonesia's economic recovery this year. These domestic problems also arise because of the increase in interest rates by Bank Indonesia (BI).

Meanwhile, the unemployment rate also causes results in economic movements. In addition, the current condition is also an indication that there will be a downward trend in terms of consumption.

It is due to the determination of the interest rate benchmark from Bank Indonesia, which is still very sluggish. In addition, foreign data related to imports also weakened by 6.26 percent in a year in March 2023.

Coordinating Minister for Economic Affairs Airlangga Hartanto Optimistic for Economic Growth

Coordinating Minister for Economic Affairs, Arialngga Hartanto, also said that officials are optimistic that Indonesia will achieve the economic growth target of 5.3% this year. The economy is estimated to remain strong with several positive economic indicators.

"We are optimistic that economic growth can be maintained in 2023, which is the recovery momentum that must be utilized. We also managed to reduce annual inflation to 4.33 percent in April from 4.97 percent in March," he told a press conference on Friday.

Gross domestic product rose 5.03% in the three months through March. That was faster than the median estimation, and economic contraction could occur in a seasonal pattern over the year. But the focus is now close to the movement of the Rupiah.

Economists note that the Indonesian economy this week experienced many mixed movements. The domestic financial market also shows large Rupiah transactions. However, the focus of Airlangga Hartanto as minister of economics is economic growth.