The Rupiah Exchange Rate in the State Budget is Always Lower Than the Actual Rate

On May 22, 2018, the Indonesian Rupiah exchange rate at the Jakarta Interbank Spot Dollar Rate (JISDOR) reached 14,178 per United States dollar. Meanwhile, the Rupiah exchange rate assumed in Indonesia's macroeconomic projections within the 2018 State Budget (APBN) was pegged at 13,400 per US dollar.

This means the current Rupiah exchange rate shows a difference/depreciation of 778 Rupiah compared to the rate assumed in the APBN's macroeconomic assumptions. This difference is higher than the previous year's 148 Rupiah. As is known, since 2011, the actual Rupiah exchange rate against the US dollar has always been higher than that pegged in the APBN. The largest difference between the JISDOR Rupiah exchange rate and the macroeconomic assumption was recorded in 2013, reaching 1,737 Rupiah, while the smallest was in 2016 at 129 Rupiah.

Uncertainty in the global financial markets caused the Rupiah exchange rate to fluctuate in 2018. Based on Bloomberg data, today's trading saw the Rupiah exchange rate at 14,155, meaning it has depreciated against the US dollar by 4.23% year-to-date (YTD). This weakening of the Rupiah is the third largest, behind the Indian Rupee (6.03% weakening) and the Philippine Peso (4.65% weakening) against the US dollar.