This is my presentation about Exchange Rate Condition in Indonesia compare to ASEAN

1. Exchange Rate
By : Ayu Tiara (B12112023)

2. Exchange Rate??
Price for which the currency of a country can be exchanged for
another country's currency. –BusinessDictionary.com-
An exchange rate (also known as a foreign-exchange rate, forex
rate, FX rate or Agio) between two currencies is the rate at which
one currency will be exchanged for another. It is also regarded as
the value of one country’s currency in terms of another currency.
–Wikipedia-

3. Exchange Rate Regime
• Fixed Exchange Rate
• Free Floating Exchange Rate
• Manage Floating Exchange Rate
• Pegged Exchange Rate
• Currency Board/Basket of Curencies

4. Theabovemapshowswhichcountrieshaveadoptedwhichexchangerateregime.Darkgreenisforfree
float,neongreenisformanagedfloat,blueisforcurrencypeg,andredisforcountriesthatuseanother
country'scurrency.
Source:Boundless.“ExchangeRateSystems.”BoundlessEconomics.

5. Quotation
• Direct quote is a foreign exchange rate quoted as the
domestic currency per unit of the foreign currency. In
other words, it involves quoting in fixed units of foreign
currency against variable amounts of the domestic
currency.
• Indirect quote is a currency quotation in the foreign
exchange markets that expresses the amount of foreign
currency required to buy or sell one unit of the domestic
currency.
A direct quote can be converted to indirect quote by
the following formula:
Direct Quote =
1
Indirect Quote

6. Example
• Exchange rate between U.S dollar and Indonesia Rupiah
is Rp12 820.5128 per U.S dollar
• Indirect quotation for Indonesia Rupiah is US$ 7.8 × 10-
5 per IDR (1/12820.518)

7. Nominal vs Real
• The nominal exchange rate simply states how much of
one currency can be traded for a unit of another
currency.
• The real exchange rate, on the other hand, describes
how many of a good or service in one country can be
traded for one of that good or service in another country.

8. Factors are Influenced
Exchange Rate
• Inflation rate
• Income level
• Interest rate
• Trade balance
• Government control
• Expectation

11. Indonesian Government Policies
to control Exchage Rate
• Fix the trade deficit by encouraging exports and the level
of tax relief on certain industries.
• Maintain economic growth by ensuring the state budget
deficit remained at 2.38% and keep secure financing.
• Maintain purchasing power, by changing the marketing of
beef and horticulture.
• Accelerating investment to optimize the integrated one-
stop service system for licensing investment.

18. Conclussion
• Moneter crisis in 1998 and financial crisis in 2008 have
bigger impact to Indonesia exchange rate stability
• Indonesia rupiah is the lowest currency compare to 4
ASEAN country such as Malaysia, Singapore, Thailand,
and Philippine