Daftar Isi
Rupiah Weakens This Month, The Fed’s Reference Interest Rate Is Predicted to Continue to Rise
Since early February, the rupiah has been declining from its position at around IDR 14,850 once again to touch the IDR 15,000 mark following profit-taking actions.1 This profit-taking action itself is also caused by market sentiment towards the improving condition of the US economy. US inflation has begun to decline, but it is still far from the Federal Reserve’s (Fed) target. This has raised concerns that US interest rates have yet to peak, opening up the possibility that the central bank will continue to raise interest rates several times this year.
Data show that US employers added more jobs in January 2023 than economists had predicted, potentially giving the Fed more leeway to maintain the interest rate hike.2 This week, investors are waiting and seeing several events and economic data in the US to determine their perception of the Federal Reserve’s policy, which is expected to occur in early March. This is expected to make the rupiah move from IDR 15,280 to IDR 15,330 per US dollar until next week.
Digital Transactions and Finance are Growing Rapidly in Encouraging Economic Activity
Indonesia’s digital economy is proliferating. The latest data from Bank Indonesia’s February 2023 Monetary Policy Review shows that electronic money transactions have increased by 26.08% YoY to IDR 36.57 trillion in January 2023.3 This surge in electronic money transactions highlights the increasing purchasing power of the population and how digital transactions have contributed to the country’s economic growth.
Furthermore, digital banking transactions have increased by 26.08% YoY to IDR 4,900.6 trillion. These facts point to a growing trend of cashless payments, which are becoming more popular with the public and accelerating the buying and selling process. One such payment method is QRIS, which is gaining popularity due to its convenience and security.
Bank Indonesia predicts that the value of digital transactions will continue to increase, reaching IDR 495.2 trillion in 2023, representing a YoY increase of 23.90%.4 This successful adaptation to digital finance is good news for the country’s economic recovery after being hit by the pandemic for nearly three years.
The rapid development of digital finance in Indonesia is beneficial not only for the country’s economic growth but also for businesses. The primary advantages of Digital Finance in Indonesia are convenience, speed, and security. For example, KoinWorks NEO is a platform created to enable secure and easy transactions, which is an option for small and medium-sized enterprises (UMKM) to help boost Indonesia’s economic development.
The adoption of digital finance in Indonesia has many benefits, such as reducing the risks of fraud and theft, improving the efficiency of transactions, and increasing access to financial services for unbanked or underbanked people. It also opens up new business opportunities to expand their operations and reach more customers.
In conclusion, the increasing trend of digital finance in Indonesia has positively impacted the country’s economic growth. It is essential to continue to develop digital finance infrastructure to support businesses and individuals in accessing financial services and contribute to the country’s economic growth.
Central Bureau of Statistics: Foreign Tourist Arrivals Increase by 500%
In January 2023, the Central Statistics Agency (BPS) recorded a 503.34% increase in the number of foreign tourists visiting Indonesia, reaching 735,950 people. This figure is much higher compared to January 2022, which had only 121,980 visitors.5 The increase in the number of foreign tourists is certainly due to the lifting of travel restrictions in several countries, including Indonesia.
According to Pudji Ismartini, the Deputy of Distribution and Services Statistics at BPS, in January 2023, 620,900 foreign tourists entered Indonesia through the main entrance, while the remaining 115,000 entered through the borders. The majority of these foreign tourists were from Malaysia (15.26%), Australia (13.46%), Singapore (13.05%), Timor Leste (9.57%), and India (4.46%).
The increase in the number of tourists visiting Indonesia will have a positive impact on the country’s foreign exchange earnings. Moreover, it also opens up opportunities to boost the economy in several tourist destinations. This chance is also seen as an opportunity to attract foreign investors who want to contribute to developing the tourism sector in Indonesia.
