IDR Expected to Strengthen as Foreign Investors Return to Indonesia with More Confidence

With the IDR returning to pre-COVID-19 pandemic levels, Bank Indonesia (BI) expects the IDR to strengthen further as foreign investors make a return amidst the global economic recovery. According to media reports, the IDR has gained 15% since the end of March 2020 to IDR 13,877 per USD as of the 5th of June 2020.

According to the Governor of BI, Perry Warjiyo, foreign investors’ confidence in Indonesia is regaining as reflected by increasing capital inflow in terms of the purchase of Government securities. However, Warjiyo added that the IDR is still undervalued and will strengthen further as Indonesia’s credit default swap is yet to return to pre-COVID-19 levels, whilst the current account deficit shortened a...