Bank Indonesia Governor Sees Rupiah Strengthening in 2023

BANK Indonesia expects the rupiah, which has slumped this quarter, to regain its strength heading into 2023, Governor Perry Warjiyo said.

The local currency, the region’s worst-performer this quarter, is supported by recovery momentum in Southeast Asia’s largest economy as well as more attractive yields, the governor said at the central bank’s annual meeting on Wednesday. The central bank will keep buying government bonds in the secondary market, he said.

The monetary authority will maintain a “triple intervention” strategy to support the local currency and will continue with Operation Twist through 2023 to boost yields, the governor said.

The central bank expects inflation to cool to within its 2%-4% target in the first half of 2023 as it reaffirms expectations that gross domestic product will rise by 4.5%-5.3% next year. Monetary policy will remain pro-stability next year, Warjiyo said. – Bloomberg / pic TMR File