CIDISS. The government ensures that Indonesia’s economic fundamentals are still strong enough to withstand the fluctuation of the rupiah exchange rate which has recently weakened against the dollar.
Minister of Finance (Minister of Finance) Sri Mulyani Indrawati ensured Indonesia’s economic fundamentals remained strong even though the rupiah continued to weaken against the US dollar (US) by touching the level of Rp.14,900 per USD. According to him, economic fundamentals should not make the rupiah weaken too deeply like now. But the global pressure that was so strong became a negative sentiment that caused almost all currencies to weaken against the US dollar.
He added, the government is attempting a current account deficit (CAD) below two percent. In addition, primary balance is also close to zero percent, coupled with efforts to maintain the balance of payments so as not to deficit and become a negative sentiment. He explained, then we hope that Indonesian caution will be distinguished from other emerging countries that are fundamentally more fragile and economic policies do not reflect their foundations.
On the other hand, the government also keeps speculators from taking advantage of current conditions. According to Sri Mulyani, the government will work together with Bank Indonesia (BI) and the Financial Services Authority (OJK) to reduce the sentiment.
He said, there were parties who used the opportunity to take advantage of themselves. So the actions taken by us together with OJK and BI to monitor very firmly and in detail from economic actors who try to do profit taking.
In response to the current weakening of the rupiah, there are certainly many parties who are worried, but what needs to be remembered is that Indonesia has an economic structure that is different from other emerging countries. From the more prudent implementation of fiscal policy and the strong role of MSMEs in the national economy, it is a good capital to maintain economic stability amid so strong global pressures.
By: Ajeng Mufadillah *)
