Kenapa Nilai Tukar Uang Selalu Berubah?

Summary

In this video, Luna explains the fluctuations in the exchange rate between the Indonesian Rupiah (IDR) and the US Dollar (USD), examining factors that influence currency values. She highlights how supply and demand dynamics, foreign investments, and the global market impact the value of a currency. Luna uses relatable examples like the rise in prices during COVID-19 and the influence of foreign investments in countries like Japan and Singapore. She also addresses how the strengthening dollar can benefit certain sectors in Indonesia, such as exporters and overseas workers.

Takeaways

• 😀 The value of the Indonesian Rupiah has been fluctuating, with the exchange rate against the US Dollar reaching around 15,900 to 16,000 IDR in 2023, which is much higher than in April 2023 when it was about 14,600 IDR per Dollar.
• 😀 In the past decade, the Rupiah has weakened by around 50% compared to the US Dollar, a significant shift since the time of President SBY when the Rupiah was much stronger.
• 😀 The fluctuation in currency values is influenced by market demand, just like the price increases of goods like masks, hand sanitizers, and multivitamins during the COVID-19 pandemic.
• 😀 A currency strengthens when demand for it rises, much like how the price of goods increases when demand is high. Conversely, when demand decreases, the value of the currency weakens.
• 😀 Currency fluctuations are influenced by various factors such as international trade, tourism, business development, and financial asset transactions across borders.
• 😀 Major economies like the US and European countries tend to have stronger currencies because of their consistent export of high-demand goods and services.
• 😀 Foreign investment, especially in developing economies, can drive up the demand for a country's currency, resulting in currency appreciation.
• 😀 Investment in a country's economy, such as foreign capital entering a country, can lead to an increased demand for its currency, thus strengthening its value.
• 😀 The value of currencies can also be influenced by the buying and selling of government bonds and securities. A rise in interest rates in a country can increase foreign demand for its bonds, thus strengthening the currency.
• 😀 Despite the Rupiah's weakening, some groups benefit from the rising value of the US Dollar, such as exporters, Indonesian workers earning in USD, and tourism sectors due to a more attractive exchange rate for foreign visitors.

Q & A

What has been the trend in the Rupiah's value against the US Dollar in the past 6 months?

Over the past six months, the Rupiah has depreciated significantly against the US Dollar, rising from IDR 14,600 in April 2023 to nearly IDR 16,000. This shows a steady weakening of the Rupiah.

Why did the value of the Rupiah weaken so much over the past decade?

The Rupiah has weakened by approximately 50% over the past decade compared to the US Dollar due to various economic factors, including trade imbalances, inflation, and fluctuations in global financial markets.

What is the basic concept of currency fluctuation that Luna uses to explain the topic?

Luna compares currency fluctuation to everyday trade dynamics, explaining that when demand for a currency increases, its value strengthens. Similarly, when demand decreases, its value weakens.

How does supply and demand influence the value of a currency?

Just like with products, if there is a higher demand for a currency (whether due to trade, investment, or other factors), its value will increase. On the other hand, if the demand drops, its value will decrease.

How did the COVID-19 pandemic impact the prices of goods and services?

During the pandemic, the demand for items like masks, hand sanitizers, and multivitamins skyrocketed. This surge in demand caused their prices to increase, as sellers took advantage of the higher need for these products.

What is the significance of foreign trade in the value of a country's currency?

The value of a currency can be influenced by foreign trade. When a country exports a lot of goods, it creates a consistent demand for its currency, which can cause the currency's value to rise.

How do foreign investments affect currency values?

When a country experiences significant foreign investments, investors must buy the local currency to make investments. This increased demand for the currency can cause its value to appreciate.

Can you give an example of how foreign investment affected a country's currency in history?

During the 70s to 90s, Japan saw a significant influx of foreign investment, which led to a strengthening of the Japanese Yen. Similarly, Singapore's economy grew due to foreign investments, which also resulted in the strengthening of its currency.

What role do government bonds play in currency fluctuations?

Government bonds, like US Treasury bonds, attract investors globally, especially when interest rates rise. As investors buy these bonds, the demand for the country's currency (like the US Dollar) increases, causing the currency's value to strengthen.

Why does a higher interest rate in the US lead to a stronger Dollar?

When the US increases its interest rates, it offers higher returns on US government bonds. This attracts global investors to buy US bonds, which requires them to purchase US Dollars, thereby increasing the demand for the Dollar and strengthening its value.

How does the weakening of the Rupiah benefit some people in Indonesia?

A weaker Rupiah can benefit exporters, as their products become more competitively priced abroad. Additionally, Indonesian workers earning in US Dollars (like overseas workers) or those in the tourism sector may benefit from the stronger Dollar.

Can the weakening of the Rupiah have positive effects for the Indonesian economy?

Yes, the weakening of the Rupiah can boost exports by making Indonesian goods cheaper for foreign buyers. It can also increase the number of foreign tourists visiting Indonesia, as their foreign currency goes further in Indonesia.