Bandung, W Java (Antara Bali) -- It is believed that the rupiah depreciated to around Rp13,500 per U. S. dollar due to expectations and speculations, a senior economist of the Indonesia Standard Chartered Bank, Alexander Eric Sugandi, said.
"It is likely that the numerous short-term expectations made the rupiah decline," Sugandi stated during a workshop on the political and economic situation, here on Saturday night.
He believes that expectations such as gauging the approximate price of fuel and the uncertain interest rate from the U. S. led to the current unstable state.
In addition, the economy is also being affected by the weakening shares of China.
"Estimating the cost of shipping (oil) through vessels can also be a factor that resulted in the depreciation of the rupiah," the economist pointed out.
Moreover, Sugandi is of the view that if the state does not bring about changes in the economy, its efforts to achieve the target of 5 percent growth will be hampered.
"While the economic slowdown continues to cause a bottleneck, it (the economy) should not be burdened by targets," he remarked. (WDY)
