Wednesday, 20 October 2021 | 14:26 WIB

Tax’ Positive Realization Pushes Rupiah Stronger Early Month

Rupiah

JAKARTA, NNC - Opening of trading at the beginning of the month, Monday (12/4/2017) saw the rupiah exchange rate moved higher in the green zone against the United States (US) dollar.

Earlier in the week, rupiah on the trading market rose 19 points to the level of IDR13,525 per US dollar when some market players responded positively to the realization of government tax revenue.

"The rupiah exchange rate appreciated against the US dollar as some money market participants responded positively to the realization of tax revenue which reached 78 percent until November 2017," said Binaartha Sekuritas’ analyst Reza Priyambada.

Directorate General of Taxes at the Ministry of Finance recorded the realization of tax revenue until the end of November 2017 reached 78 percent or about IDR1,148 trillion of the total target in the 2017 Revised State Budget of IDR1,472 trillion.

Reza expects the realization of tax revenue this year could be on target so that there is no shortage that can disrupt the state expenditure.

He also explained that the movement of the US dollar is still overshadowed by sentiment from the uncertainty regarding the United States’ tax reform.

"The market does not like uncertainty, it keeps the US Dollar on hold, as market participants tend to wait and see the progress of the tax discussion," he said.