IDR is too strong for its own good

"Landep News"

The Indonesian Chamber of Commerce chairman Bambang Suryo Sulisto, expresses his concern about the Indonesian Rupiah that keep getting stronger against the green back. He mentioned that the Rupiah Dollar exchange rate should stay above the 9,000 IDR per 1 USD.

He reminded the Indonesian products which are already having a hard time competing with foreign products in the world market now have to face even more challenge with the decline of the US dollar which in turn severely weaken the Indonesia’s export performance.

IDR is too strong for its own good

“Our trade is increased and our exports are also increased. However, because the Rupiah keep strengthened, this made us a little worried. If the rupiah is too strong, then what happens is that people will imports more than exports. The tendency is that we see our imports rose sharply. This is what we should be aware. Rupiah should not be too strong, in my opinion it should not go below 9.000, “said Bambang .

Previously, Minister of Finance, Agus Martowardojo explained to the press in Jakarta that the government will keep the state budget from variety of threats it would not adversely impact the national economy. The increase in world crude oil prices and the strengthening of the Rupiah has become the focus of government attention lately.

Especially for the strengthening of the Rupiah Agus Marto Minister affirmed the commitment that the government will keep strengthening the linkages of trade balance in order to suppress growing trade deficit.

“This is the situation. We’ll manage it, but we also must be aware of the balance of trade, and balance of trade is shrinking, “said the minister.

Currently the exchange rate is in the range of Rp 8,500 per U.S. dollar. The strengthening of the rupiah continued to occur since the beginning of 2011 from around Rp 9,300 per U.S. dollar. The strengthening of the Rupiah according to the government is more because of the weakening U.S. dollar exchange rate the U.S. economy is weakens.

These conditions according to the Central Bureau of Statistics or the BPS Indonesia cause weakening exports and imports continue to rise. For example the April 2011 import is the highest export month of all time in Indonesia.

The situation according to the government and Bank Indonesia must be watched because the government is still relying on exports to boost the national economy. This year the government is targeting exports reached 160 billion U.S. dollars, an increase compared to last year’s target of 150 billion U.S. dollars (VOA)

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