JAKARTA - The rupiah exchange rate against the US dollar continues to fall after President Donald Trump announced a new tariff policy, targeting a number of trading partner countries, including Indonesia, on Wednesday (2/4).

Based on Bloomberg data on Friday (4/4), the rupiah contract traded on the foreign market or Non-Deliverable Forward (NDF) slumped to IDR 17,006 per US dollar, recording a decline of up to 1.58% at 20.53 WIB.

The import tariff policy implemented by Trump is believed to worsen the condition of the rupiah exchange rate.

Previously, a businessman engaged in the financial industry, explained that the 32% tariff negotiations for Indonesian exports with the US do need to be continued, but the government should focus on quick steps to maintain the stability of the rupiah exchange rate.

‘The JCI is declining, and the rupiah is also weakening. What is more dangerous is if international rating agencies such as Moody's, S&P, or Fitch downgrade Indonesia's credit rating in June,’ he said.

The businessman emphasised the importance of Indonesia maintaining the rupiah exchange rate, which is currently under pressure due to global market uncertainty. He also suggested that President Prabowo instruct the Minister of Finance and Governor of Bank Indonesia to immediately lobby BRICS countries, especially China.

‘If Indonesia can open credit lines with China and Japan, even if the credit rating drops, the rupiah can still be maintained,’ he added.

Regarding Government Securities (SBN), the businessman said that what needs to be guarded are SBN owned by foreign investors, which amount to around IDR883 trillion or around US$53 billion.

‘If Indonesia has around US$30 billion in reserves from China, we don't need to worry despite the credit rating downgrade,’ he said.

Regarding contacts with China, a source close to President Joko Widodo (when he was still in office) revealed that Jokowi had called Chinese President Xi Jinping twice.

‘Around 2020 when Covid started and the rupiah weakened, Jokowi immediately called Xi Jinping twice. And Xi Jinping's response was also positive,’ he said. (DK/KR/LM)