https://www.xe.com/currencyconverter...rom=SGD&To=IDR
The indonesian rupiah has devalued again to a new record low at 10810 rupiah per sing dollar.
Some of the reasons could probably be due to:
1) US raising interest rate attract investors to place US currency. Rupiah becomes unpopular.
2) The rupiah is currently not an attractive asset as Indonesia is being plagued by high inflation and slowing economic growth.
3) Foreign investors holding about 40 percent of Indonesia gov bonds therefore the country is highly vulnerable to ‘mood swings’ of foreign investors.
4) Falling commodity prices (e.g. crude oil, palm oil and coal) caused by the global economy and particularly by China’s economic slowdown.
About 40 years ago Year 1978 when I went to Jakarta as a child, I remembered that the exchange rate was S$1 = 1000 rupiah
Now in Year 2018, it has become S$1 = 10800 rupiah
Devalued almost 11 times over 40 years period...
I wonder whether with the continue depreciation of the rupiah, will the cost of hotel, massage, booking girls, public transport and ferry ticket be raised...
