Indonesian central bank governor says not to worry over rupiah

Indonesian central bank governor Agus Martowardojo said on Thursday that it is not necessary to be wary of weakening of rupiah against the U.S. dollar as the value is still in line with the macro-economic fundamentals and the weakening is more caused by external factor.

The central bank governor made the statement as rupiah passed physiological level to 13,025 per one U.S. dollar on Thursday, falling from 12,917 on Wednesday's closing.

Martowardojo said that the central bank would be in market and ready for intervention to ease the volatility.

"It is not necessary to worry over rupiah. The central bank is always in the market to keep rupiah (good) volatility," he said at the central bank headquarters.

"The value of rupiah is linked with many factors, ...such as the external factors," Martowardojo added.

The U.S. Fed reserve's plan to raise interest rate due to improved economy has triggered capital outflows from emerging market, including Indonesia.

He said that rupiah value remains in line with the country's current account deficit target of about 3 percent of the gross domestic product (GDP).

The biggest economy in Southeast Asia witnesses current account deficit of 2.95 percent of GDP in 2014 and 3.18 percent of the GDP in 2013, according to the central bank.

Separately at the State Palace, Indonesian President Joko Widodo on Thursday ordered authorities to stabilize rupiah value against the U.S. dollar, Cabinet Secretary Andi Widjajanto said.

The central bank on Feb. 17 unexpectedly lowered its benchmark interest rate by 25 basis points to 7.5 percent to accelerate economic growth. Endi