Jakarta –
JP Morgan Indonesia projects the rupiah exchange rate will be at the level of Rp 16,100 per US dollar (US) at the end of 2025. This projection comes from the weakening of the dollar value to the strengthening of the Indonesian capital market.
“The target is from us Rp 16,100 per US dollar at the end of the year, now at the level of Rp 16,300 more yes. This rupiah will be better and can be more stable, said CEO & Senior Country Officer JP Morgan Indonesia Gioshia Ralie, as quoted by Antara on Thursday (4/9/2025).
Regarding the current rupiah position, Gioshia explained along with the investment instrument for Fixed Income or Indonesian debt securities whose current foreign ownership tended to be a little about 15%, while it was once in the range of 50%.
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“Because indeed in connection with the US interest rates are quite high, and why do they buy debt securities in Indonesia with this effect like this,” Gioshia said.
According to him the rupiah will strengthen against the US dollar if there is an incoming investment, both from domestic and global.
“Now this domestic or foreign, it can run if we have an easier process. So the business is a medium term, not short term,” Gioshia said.
Head of Indonesia Research & Strategy JP Morgan Indonesia Henry Wibowo said the trend of rupiah exchange rate movements was also influenced by the volatility of the US dollar index).
“So, if we see the rupiah there are two factors, one internal factor from Indonesia is like, investment must enter, the economic growth must be good. Second is from the US dollar itself, the dollar trend is weakened or again strengthened,” Henry said.
It projects that the US dollar index will experience weakening for the next 12 months, so that it will make the rupiah currency move strengthened.
“Our view, the next twelve months is for the US dollar trend will weaken. So that’s why we forecast the end of this year is Rp 16,100 per US dollar,” Henry said.
In terms of the capital market, Henry projects the Composite Stock Price Index (CSPI) will be at the level of 7,500-8,000 in the remaining 2025. Because according to him the performance of the Indonesian stock market will be supported by the realization of government spending in the remaining 2205.
“Maybe at the present time until the end of the year, we feel that IHSG will move at 7,500 to 8,000 levels,” Henry said.
(Igo/hns)
