Rupiah weakens, beware of spiking inflation

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Mata Uang
Illustration. Rupiah and US Dollar. (Source: Liputan6)

Jakarta, IO – Rupiah depreciation is predicted to continue if no anticipatory measures are taken immediately. This was conveyed by University of Indonesia economist Ninasapti Triaswati in response to the local currency weakening to Rp. 15,000 per US dollar. According to her, the stability of food and energy commodities must be prioritised.

“Basically, we have to anticipate imported inflation,” said Ninasapti, as reported by CNBC Indonesia, Thursday (7/7).

She said the energy sector will be affected by the exchange rate volatility, especially fuel oil and cooking gas. “However, so far the government has managed to rein in price increases through additional subsidies which will reach Rp520 trillion in 2022,” she remarked.