External factors responsible for rupiah`s fall: Chief minister

"This is a global trend that has affected not only Indonesia but all currencies too have suffered tremendous pressures," Chief Economic Minister Sofyan Djalil said.
Jakarta (ANTARA News) - External factors were responsible for the depreciation of the countrys currency in the past few weeks, Indonesian Chief Economic Minister Sofyan Djalil stated here on Tuesday.

"This is a global trend that has affected not only Indonesia but all currencies too have suffered tremendous pressures," he remarked at his office.

Sofyan said that the improving US economy and appreciation of its currency coupled with anticipatory measures adopted by its central bank such as the upcoming policy have all contributed to depreciating the rupiah.

In comparison to the currencies of other countries, the rupiah is still relatively better and has not been under significant pressure, he pointed out.

"The condition of the rupiah is not bad, not the worst. Until today, the annual depreciation of the rupiah is recorded at only four percent," he stated.

He said the government will continue taking various steps to maintain the stability of the rupiah in line with the countrys economic fundamentals.

He remarked that the depreciation of the rupiah was not caused by domestic problems as the countrys political condition was relatively stable and the hard work done by the current cabinet is expected to improve the countrys future economy.

"The depreciation of the rupiah is caused by external factors or is a global trend. We will take every step to maintain the rupiahs exchange rate," he emphasized.

The rupiah was traded at Rp12,884, down 171 points against the US dollar in interbank transactions on Tuesday as compared to the previous recorded value of Rp12,713.(*)

Comments