This takes into account the transient nature of inflationary pressures, which will decline back to the target in the medium-long term. As we have said before, amid intense external pressures, Rupiah depreciation in 2022 is still lower than in several other emerging economies.
This is inseparable from Bank Indonesia’s consistency in monitoring and intervening in the market to maintain Rupiah stability in line with the fundamental value and market mechanisms, as well as the positive perception of foreign investors concerning the promising outlook for the Indonesian economy.