The rupiah`s depreciation had nothing to do with fundamental changes in instruments or else, BI Deputy Governor Hartadi A. Sarwono said.Jakarta (ANTARA News) - The rupiah weakened early this year due to a shortage of dollar supplies in the country, according to Bank Indonesia (BI).
The rupiah`s depreciation had nothing to do with fundamental changes in instruments or else, BI Deputy Governor Hartadi A. Sarwono said here on Friday.
"Overall, in the BoP (Balance of Payment) we still record a surplus. This means that the current account deficit still can be offset by capital account," he said.
Yet, the BoP was very much supported by Foreign Direct Investment (FDI), he said.
"As we all know nearly 75-85 percent of the FDI comes in kind, or in the form of goods and services, such as consulting services, and only a few of it comes in cash," he said.
Therefore, only part of export-import deficit was offset by cash fund in the market, he said.
"From time to time we must have the courage to intervene in the market to narrow the gap between supply and demand in the foreign currency market," he said.
Hartadi further said the expected global economic recovery in 2013 will have a good impact on Indonesia`s exports.
"We hope our exports will increase again," he said.(*)
Editor: Heru Purwanto
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