Bank Indonesia is confident that the rupiah will be able to withstand short-term financial market volatility and expects the currency to strengthen.
Edi Susianto, the executive director of monetary and security asset management at the central bank, stated that although the rupiah may experience significant fluctuations in the near term, the overall outlook remains positive.
The volatility is primarily due to market sentiment surrounding the Federal Reserve's potential policy rate easing and the implications of the upcoming US election results.
Bank Indonesia is closely monitoring these developments as they could impact the rupiah's performance in the financial markets.