TEMPO.CO, Jakarta - Rupiah strengthened by 35 points to Rp16,278 per US dollar in afternoon trade on Monday, previously strengthening by 45 points. The rupiah managed to recover from the previous closing at Rp16,313.

Currency observer Ibrahim Assuaibi mentioned that despite today's rupiah strengthening, it is expected to experience fluctuating movements with a tendency to weaken for tomorrow's trading. "The rupiah is predicted to be fluctuating but closing weaker in the range of Rp16,260 to Rp16,330 per US dollar," Ibrahim said in his statement on Monday, February 24, 2025.

One of the factors affecting today's rupiah movement, he said, is the inauguration of Indonesia's newest sovereign wealth fund (SWF), Daya Anagata Nusantara or Danantara Indonesia, by President Prabowo Subianto on Monday, February 24, 2025. Prabowo stated that Danantara manages the initial funds from the government's efficiency efforts.

In this inauguration, Prabowo signed the Presidential Decree (Keppres) regarding the Danantara Investment Management Board, which will manage funds worth Rp300 trillion or about US$20 billion. The President mentioned that the amount came from tight financial discipline in the first 100 days of his administration.

Initial evaluations indicate that the assets under management (AUM) of Danantara exceed US$900 billion or about Rp14,700 trillion. The initial funds of Rp300 trillion will be allocated to more than 20 national projects focused on the industrialization and downstream of Indonesia.

The first wave of Danantara investments will focus on downstream mineral projects, including nickel, bauxite, and copper, and the development of data centers, artificial intelligence, oil refineries, and renewable energy.

Ibrahim Assuaibi assessed that despite the inauguration of Danantara bringing fresh air to the national economy, the rupiah is expected to face volatility shortly. Global factors such as The Fed's monetary policy and geopolitical dynamics also influence the movement of the domestic currency.

With the continuously developing economic fundamentals and market confidence in the country's investment management, the rupiah potentially strengthens in the medium to long term, especially if Danantara can effectively realize its investment targets.

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