Rupiah’s Costly Protection Could Go to Waste

The market’s pressure on the rupiah is simply too strong to bear. The cost of defending it might be wasted.

Yopie Hidayat

October 30, 2023

THE rupiah continues to decline. Last month, it depreciated by 3.1 percent against the United States dollar, and it may continue depreciating. The latest data on the United States’ economy, which was released last Thursday, can push the rupiah even lower.

That data is the rapid growth rate of the US economy, which was 4.9 percent in Q3 2023. The US economy proved to be resistant to high interest rates and it maintained high growt

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