Coordinating Economic Minister Darmin Nasution has expressed his optimism that the rupiah will approach its fundamental value as a result of the introduction of an economic policy packages that he claims will motivate investors and help the currency.

"There will be movement, but not Rp 200 a day; that is very quick," he told reporters at his office on Thursday.

The currency has appreciated 8.7 percent against the greenback since Oct. 1, but is still lower than it was early this year, when it stood at 12,545 per US dollar.

He said that rupiah had been undervalued in the past year due to speculations, euphoria and perceptions, and so he wanted to change the negative perceptions facing it.

"The change is ongoing now [thanks to the economic package]. It is not completed yet but we are working on that," said the former central bank governor.

Based on data from Bloomberg, the rupiah rose to Rp 13,370 against the US dollar on Thursday's opening after it hit 13,616 at the previous day's closing.

Darmin said the current exchange rate of the rupiah against the greenback was not the currency's fundamental value.

Still, Darmin warned that the US Federal Open Market Committee (FOMC) meeting being held before the end of the year would impact on the rupiah because the dollar would likely strengthen prior to the meeting.

"This is a situation that we must go through, so we don't have to be worried or nervous. The most important thing is that we work hard," he said. (rin)

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