In recent times, world economic stability is in crisis. This moment brought an unexpected event with the entry of Indonesia in the top 3 of Asia’s Best Performing Currencies. On August 28th, 2022, Indonesia broke world stigma as Fragile Five after successfully reaching 3rd place this year. Since a decade ago, people have underestimated Indonesia because of its vulnerable currency and dependence on foreign money.
Indonesia got a steady position with only a 3.8% drop of performing currency. It’s more unbelievable after considering that Bank Indonesia (BI) has rejected The Fed (Federal Reserve System)’s rules of benchmark interest rate.
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Deputy Governor of Bank Indonesia, Aida S. Budiman, stated that Indonesia’s economy is still quite good so Bank Indonesia (BI) believes that an increase in the benchmark interest rate is not necessary. Instead of increasing the interest rate, Bank Indonesia chose to focus on keeping commodity prices stable in the midst of global uncertainty so that inflation rates are maintained.
Bank Indonesia proved that their choice regarding Indonesia’s current position in Asia’s performing currency is right. Indonesia could reduce its minus points of currencies and became top 3 in Asia.
