Rupiah Gains on Jokowi Factor

Jakarta (Antara Bali) - The rupiah value regained strength in closing trade after losing against the US dollar in the opening trade on Friday.

The currency closed at the level of 11,375 per US dollar gaining 11 points from 11,386 earlier on political euphoria following announcement that popular Jakarta Governor Joko Widodo better known as Jokowi has been named presidential candidate for the Indonesian Democratic Party of Struggle (PDIP)

"The market sentiment on the financial market was positive again, Rully Nova, an analyst from Bank Himpunan Saudara said.

In addition, the Indonesian economic fundamental is also strong, Rully said.

He said market players closely followed political developments ahead of the legislative elections next month to be followed by presidential election.

"Favorable political condition would be good for the financial market," he said.

Political sentiment, however, has a short term impact, he said, adding after the elections the market players would be more interested in economic fundamentals.

He said Bank Indonesia is still consistent in adopting its tight money policy considered effective to strengthen economic stability.

He warned , however, that external sentiment mainly with the Ukraine crisis could have bad impact on rupiah preventing it from gaining more strength.