Economists predict rupiah will end the year at Rp14,100 against dollar

"In terms of exchange rates, we tend to weaken, it seems for this year I could say that the rupiah will still be pressured until the end of the year," said Anton in Jakarta, Wednesday.

Based on the central rate of Bank Indonesia on Wednesday, the rupiah exchange rate reached Rp13,757 per US dollar, strengthening compared to the previous day Rp13,808 per US dollar.

"Apart from the yuan factor, domestically in general there will be higher demand pressures for the dollar this month (December). So I predict the rupiah will be in the range of Rp14,100 per US dollar at the end of the year, but next year I am sure it will be stronger," said Anton.

According to Anton, from the capital side, in 2016 it is predicted that capital inflows will continue to enter Indonesia along with improvements in domestic economic growth.

"Looking at our growth prospects in the range of 5 percent next year it is quite good and it could attract inflow to Indonesia, that's my reason why the rupiah will strengthen next year," said Anton.

The rupiah exchange rate strengthened after experiencing depreciation pressures in the third quarter of 2015. In the third quarter of 2015, the rupiah weakened by an average of 5.35 percent (qtq) to the level of Rp13,873 per US dollar.

Pressures on the rupiah were influenced by external factors, namely concerns about the normalization of the Fed's policy and the devaluation of the yuan.

However, the rupiah strengthened in October 2015, triggered by positive sentiment towards EM due to the dovish FOMC and improved optimism about Indonesia's economic prospects in line with the series of government policy packages and the rupiah stabilization package issued by Bank Indonesia.

The rupiah strengthened by an average of 4.47 percent (mtm) to the level of Rp13,783 per US dollar. Going forward, Bank Indonesia will continue to maintain exchange rate stability in accordance with its fundamentals.