Liputan6.com, Jakarta Rupiah continues to illustrate its downslide to the level of Rp 13,295 per US$ 1 in today's market.
According to Reuters, Indonesian rupiah's position is situated at the lowest since its traumatic downfall in August 1998.
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In responding to such worryingly weakened status, Bank Indonesia assures that the country will not experience anything similar to that of the 1998 calamitous incident.
"I know that the current rate is to a very large extent concerning to many of us, but we have to remind ourselves that the fundamentals are different from the preceeding one. Despite its growth intervened, the Indonesian financial sector is reportedly striving to survive," Bank Indonesia Governor Deputy, Halim Alamsyah informed on Friday 5 June 2015.
Halim further explained how the backslide of Indonesian rupiah this time is caused by various domestic and international factors.
The main factor that led to the weakening of rupiah is US Central bank's failure in addressing debt issue with Greece and in interest rate adjustment.
As for the domestic factor, the surprisingly high May 2015 inflation rating at 0,5% has caused for the investors to interpret Indonesian economic market in a more pejorative and unpromising tone.
"So yes we have to deal with the worst of both worlds. One from within the country and the other one relying on the US economic foreign policy," he added. (Akp/Sss)
