UBS Securities Indonesia is optimistic the rupiah during 2010 were in the range of USD 9000 to 9500 per dollar. Executive Director of Emerging Market Strategy said Nizam Idris predicted the end of 2010 Rupiah Rp 9400 per U.S. dollar and the end of 2011 was Rp 9200 per U.S. dollar.
Nizam said the rupiah strengthening occurs because the flow is strong enough capital to Indonesia. In line with the government, said Nizam, Indonesia early years capital inflows reached USD 7 trillion.
“The strength of this inflow of capital to make the rupiah strengthened,” said Nizam at Four Season Hotel, Kuningan, Tuesday, March 9, 2010. But Nizam warned that the government remains wary of capital flows is due to dominance was still hot money.
Nizam strongly supports the policy of Bank Indonesia’s SBI auction system change from weekly to monthly. The reason, of course, the flow of hot money that can be stuck there.
“If it was (money to survive) weekly, is now able to stay longer in Indonesia,” he said. The Fund for a month could be used for credit, business or bolster overall economic activity.
Nizam predicted the rupiah strengthening occurs not alone. Some countries also have an opportunity because it gained post-crisis condition continues over government policies around the world.
“Rupiah range between USD 9000 to USD 9500 because the dollar is likely to rebound,” he said.
The position of the exchange rate itself, according to UBS data, the current average level of USD 9298 per dollar. In the months ahead rupiah will move to the level of USD 9250 and intensified in the three months to $ 9200 and then weakened in late 2010 to $ 9400 per U.S. dollar.