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Flanked Rupiah Volatility Down 10 Percent in

Jakarta (ANTARA) - Bank Indonesia will keep the volatility of the rupiah against the U.S. dollar under 10 percent.

"We focus on maintaining exchange rate stability in order volatilitasnya under 10 percent," said Deputy Governor of Bank Indonesia (BI) Budi Mulya said in Jakarta on Wednesday.

According to him, the current volatility of rupiah is still kept at below 10 percent, compared with a time of crisis which amounted to 15-17 percent from 1997 to 1998.

Budi also said that the volatility is kept around 10 percent this because according to the law that Indonesia adopt free floating regime.

"If the volatility below 5 per cent that means` not `free float but precisely controlled foreign exchange," said the deputy governor.

Budi also said that the BI according to the mandate of the law will keep minimize the volatility of the rupiah.

"It does not mean changing one silver rupiah into five silver is not stable, but spoke in a matter of 9000's volatility is kept to a minimum," he said.

Exchange rate of rupiah against the U.S. dollar in the Jakarta interbank spot market on Wednesday afternoon strengthened to reach Rp9.150 per U.S. dollar compared to the previous day's closing Rp9.170-Rp9.180 or higher 20 points.

Strengthening of the rupiah exchange rate is linked to the action of market players to buy Indonesian currency intensified, despite the euro against the yen and the dollar weakened.