During interbank transactions in Jakarta on Thursday morning, the rupiah strengthened 8 points to Rp 9,708 per US dollar from Rp 9,716.

An analyst from Samuel Sekuritas, Lana Soelistianingsih, said the rupiah exchange rate remained stable after the global economy growth's revision from 3.5 percent to 3.2 percent.

'The revised projection indicates economic recovery is not yet stable although economic data shows improvements,' said Lana as quoted by Antara news agency.

Nevertheless, she said, the IMF still projected the Indonesian economy could grow to 6 to 6.3 percent in 2013 with high domestic demand as the leading driver of growth.

'Although there is a government plan to increase the price of subsidized fuel for private vehicles, the target of domestic economic growth is still achievable,' said Lana.

The economic growth forecast for Indonesia, which was still high, had become the supporting factor for the country's economy, she said.

Lana added that domestic-based sectors depending on human resources, such as construction, banking, hotels, restaurants, services, trade and transportation and communication, would still exhibit strong growth.

An analyst of Trust Securities, Reza Priyambada, said the government's plan to raise the price of subsidized fuel for private vehicles had been expected by the market players, and that Bank Indonesia (BI) would soon adjust the current BI rate.

'The rupiah will then move in line with the condition of the domestic economy's fundamentals,' said Reza. (ebf)

Popular

Indonesian hotel chain confirms exit from Cuba

Corruption scandals, rupiah fall revive reshuffle talks

Waiting is not an option