Rupiah's strengthening has yet to impact state budget

Rupiah's strengthening has yet to impact state budget

Finance Minister, Sri Mulyani Indrawati, at the parliament building in Jakarta on Tuesday (Jan 14, 2020). (ANTARA/AstridFaidlatulHabibah)

It is true that we will still look at its development and impact on the state budget in the past year and not on a daily basis.
Jakarta (ANTARA) - Finance Minister, Sri Mulyani Indrawati, stated that the Indonesian Rupiah's appreciation against the US dollar has not had an impact on revenue in the state budget.

The Rupiah strengthened against the US dollar only in recent weeks, and its impact for a year cannot be looked at on a daily basis, she said at the parliament building here on Tuesday.

"It is true that we will still look at its development and impact on the state budget in the past year and not on a daily basis," she said.

The minister said the administration will still calculate it based on national and international economic developments to see the impact of the Rupiah's strength on the national economy.

The rising state revenues were caused not only by the Rupiah's low exchange rate against the US dollar but also by external factors, including the continuation of the US-China trade agreement, she said.

In addition, the government is still waiting for the reduction of the global interest rate which will allow for more capital inflows to Indonesia, she said.

"The low global interest rate will encourage capital inflows (to Indonesia)," she said.

The government is also alert over the widening current account deficit since the Rupiah's strengthening will make the export value lower than the import value, she said

"We will also stay alert since we are still recording the current account deficit," she said.  

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