The dynamics in the economy throughout 2013 has also brought home a lesson that in order to achieve the desired optimal balance in the economy we need a discipline, forward looking, and bold macroeconomic policy. In fact, improved economic fundamentals supported by strong policy have bolstered confidence among global investor, hence attracted foreign portfolio flows back to domestic financial market. 9.
Since early January until April 4, 2014, the influx of global portfolio flows into Indonesia’s financial market reached $ billion. As a result, the Indonesian Rupiah gained 7,0%, become the strongest currency among Emerging Market currencies. Once considered a “fragile five currencies”, the Indonesia rupiah now set itself apart as a result of preemptive and strong policy actions.