REPUBLIKA.CO.ID, JAKARTA -- Minister of Finance, M Chatib Basri said that tight competition on presidential election weakened Rupiah (IDR).

This condition becomes a concern of bond holders, who also question the security if one of candidates claims to the Constitutional Court.

"Investors need market certainty," Basri said when attending Business Award 2014 on Tuesday evening.

IDR weakening was also caused trade deficit. Nevertheless, the trade balance will improve this month. Basri said that there would be an indicator of a surplus on Indonesia's net trade balance.

IDR weakening was also triggered by an increase on world oil price due to geopolitical condition in Iraq. The external factor affected the exchange rate. However, Basri is optimistic that the exchange rate will bounce back in future. IDR exchange rate that has reached 12,000 IDR per USD has regained to 11,900 IDR per USD in morning trade this week.

IDR was ever recorded as the second best exchange rate in the world during January-May 2014. The upcoming fasting month of Ramadhan, which is projected to fall on June 28, is expected to increase inflation rate, also giving more strengthening on domestic currency.

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