The rupiah weakens, observers recommend investments from blue chips to gold and real estate

TEMPO.CO, Jakarta – Exchange rate the rupiah weakened recently against the US dollar. Several factors are suspected to be causing the rupiah's decline, including rising material prices and the need for development of the Indonesian capital (IKN).

Responding to this situation, Abdul Manap Pulungan, financial economics observer from the Institute for Development of Economics and Finance (Indef), advised people who have more money to continue investing.

“This is indeed a choice, depending on the risk perception of each individual. “If you dare to take risks, invest in stocks and other investments,” said Abdul Manap Pulungan in Badung Regency, Bali, Thursday, June 20, 2024.

He thought they were stocks Blue chips or large market capitalization stocks at a low price have the potential to be viewed by the public and for potential individual investors to think more carefully about stocks over the long term, i.e. five to ten years.

'The ideal is to buy shares when prices are falling now, and then sell them within the next five to 10 years. “Don't sell if the price rises even five percent, that's like trading, not investing,” he said.

In addition to blue chips, he also advised people to buy gold if they want to invest for the long term, namely more than 10 years. Currently, the price per gram of Antam gold is IDR 1,355,000, which has the potential to be an option for long-term investments.

Apart from that, he suggested that some of the money he had could be used to buy real estate or land in the form of rice fields or plantations. Investing in government debt instruments (SUN) or government securities (SBN) that carry minimal risk can be an investment choice for the public. Even though the profits generated are not large, they are enough to induce a sense of security in society.


“Psychologically speaking, the income goes to SBN's account. “Indirectly, even if the returns are small, there is actually a psychological impact, rather than money being put into an account that doesn't yield anything,” he said.

Meanwhile, market analyst and director of PT Laba Forexindo Berjangka, Ibrahim Assuabi, views the weakening of the rupiah as an abnormal activity. He argued that Indonesia still had a positive trade surplus until last May.

“In fact, the rupiah does not need to experience a prolonged weakening if the supply of dollars from the trade balance surplus flows into the market,” Ibrahim said in a written statement, Friday, June 21, 2024.

Ibrahim also advised the government and Bank Indonesia to maintain the stability of the value of the rupiah by preserving the strength of the Indonesian economy. “This is a trade balance surplus, not a foreign exchange intervention with limited foreign exchange reserves or raising domestic interest rates,” Ibrahim said of steps to end the weakening of the rupiah.

Editor's choice: Rupiah weakens almost IDR 16,500 per 1 US dollar, the lowest since the 1998 monetary crisis, here's a look back

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