Why Rupiah is in Better Condition than Ringgit

Liputan6.com, Jakarta Indonesian Rupiah may be at its weakest stage with its major decline of 13% causing for the currency to be at the rate of Rp 14.000 or more per US$ 1. If compared to Malaysia however, whose economic reliance is also placed predominantly on its commodity sector, Indonesian Rupiah is a lot stronger than its Malaysian Ringgit.

Universitas Indonesia economic analyst, Anton Gunawan explains the main factor that  rescues Indonesia from being as subjugated as the Malaysia Ringgit.

"We are relatively better than Malaysian Ringgit because our foreign exchange reserve is still positioned at US$ 107 billion whereas malaysia is at Us$ 87 billion from the initially UD$ 140 billion," Anton wrote to Liputan6.com on Saturday 5 September 2015.

With such position, Indonesia is likely to win over the heart of investors whereas Malaysia likely to lose popularity in this term.

Though recently undervalued, scores of Indonesian Banks vowed to launch interventions that are not too large in scale so that it would be considered as 'safe' in the eyes of potential investors.

As of today, Malaysian Ringgit is still badgered down to 25% as compared to its last stance in the previous year. The condition in Malaysia immediately spurs both political and economic upheaval which was worsened by diminishing trust on its Prime Minister Najib Razak by the general public following a series of allegations claiming his involvement in corruption case.

Indonesia is actually doing well in trying to manage its volatile economy but the population is already aggravated by the short term impacts of uncertain economic climate in the global scale. The government is trying to assure them that it takes more than a day for the economy to revive and nothing works in an instant. (Akp/Ein)