The weakening of the Rupiah to around IDR 14.600 was driven by external factors, especially due to the domino effect of pressure on the Turkish Lira which spread throughout developing countries. Apart from that, the market still sees the risk of a decline in global growth due to the trade war between the United States, China and the European Union, as well as the potential negative impact on the Rupiah exchange rate. We see that the relatively good condition of Indonesia's economic fundamentals and the credibility of Bank Indonesia in maintaining exchange rate stability means that the Rupiah does not weaken further as experienced by several other developing countries. However, external risks and the condition of the current account balance mean that BI needs to accelerate the increase in the benchmark interest rate this Wednesday.

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