Manado, North Sulawesi (ANTARA News) - Economist from the University of Sam Ratulangi (Unsrat)of Manado Agus T Poputra said weak rupiah would still weigh against the countrys economy in 2015.

"Weak rupiah and current account deficit would still pose a drag on economic growth," Agus said here on Wednesday.

He said delay in the completion of construction of a number of smelters for minerals would delay recovery of exports.

The government has restricted export of raw minerals to force mining companies to build smelters in the country .

Indonesias economy has been predicted to grow 5.2 to 5.8 percent in 2015.

"Though not directly felt , rupiah weakening has contributed to rises in prices of commodities notably foods and beverages," Agus said.

Rupiah fall in value followed a strong recovery of the US economy bringing with it a dollar strengthening against other currencies including rupiah.

Importers are the hardest hit by the rupiah fall as they have to more for imports and sell their commodities at higher price in rupiah.
(Uu.H-ASG/O001)

Editor: Priyambodo RH
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