Indonesian bank aims to boost rupiah stability

The Indonesian central bank, Bank Indonesia, will take measures to keep rupiah stable against U.S. dollar, as the currency has fallen to its lowest level in more than three years, media reported here on Wednesday. Indonesia exports have weakened while the country's import rose, resulting in a trade deficit since April that hit rupiah. "The central bank only tries to guard stability amid rupiah volatility," Dody Budi Waluyo, a central bank's spokesman was quoted by the Jakarta globe as saying. The Rupiah reached the lowest level since September, 2009 on Tuesday, at 9,740 to 1 U.S. dollar. The currency dropped 6.6 percent against the dollar last year, making it the second-worst performing currency in Asia. Indonesia had a record of trade deficit of 1.54 billion U.S. dollar in October, according to the national statistic bureau. For whole of last year, Indonesia may had 21.5 billion U.S. dollar current account deficit or 2.4 percent of the country's GDP, Indonesian Finance Minister Agus Martowardojo said on Monday. Indonesian export is expected to drop by 5 percent from the initial target of 203 billion U.S. dollar in 2012 and forecast to be stagnant this year, according to Indonesian Trade Minister Gita Wirjawan. The amount of foreign exchange reserve at the Indonesian central bank rose to 112.781 billion U.S. dollar at the end of December from 111.285 billion U.S. dollar in 2011, the bank said on its website. Indonesia's growing foreign direct investment has led to weakening of exports, which made the trade deficit drop to 480 million U.S. dollar in November.