Minister believes BI will make best decision on exchange rate

Minister believes BI will make best decision on exchange rate

Bank Indonesia (BI) (ANTARA)

Jakarta (ANTARA News) - The Coordinating Minister for Economic Affairs, Darmin Nasution, believes Bank Indonesia (BI) will make the best decision on adjusting its benchmark interest rate to stem the rupiah`s weakening.

"This is part of the efforts to face global changes, including exchange rate. But let BI take its own way to address the issue," he said here on Friday.

There were many ways to control the rupiah`s exchange rate, which tended to weaken against the US dollar, he said. But it was for the BI to maintain the stability of the rupiah`s exchange rate against the dollar by raising its benchmark interest rate.

Darmin was optimistic that BI would stabilise the rupiah. "There is no need to see it as a large problem. This is not the end of everything. There is a long way to go," he said.

Earlier, Bank Indonesia had opened room to raise the benchmark interest rate or BI 7-Days Reverse Repo Rate (BI-7DRR) if the rupiah came under constant pressure. "If the pressure on the rupiah`s exchange rate continues and has the potential to disrupt the inflation rate target and the financial system stability, which are BI`s mandate, BI will not close the option of adjusting interest rate BI-7DRR," he said.

Reported by Satyagraha