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BI: Beware of Decrease in Oil and Commodity Prices

29 January 2015 15:12 WIB

TEMPO.CO, Jakarta - Bank Indonesia Governor Agus Martowardojo, said that Indonesia must be aware of the current global economic condition, especially the decrease of oil and commodity prices. According to Agus, the prices of Indonesia’s main export commodities have been continually decreasing. "In the futures market, there are eight main commodity prices that will be adjusted this year," he said on Wednesday, January 28, 2015.

Meanwhile, major economies such as the United States and China must be carefully observed. Agus said that the US economy had been improving and became the only developed country that had been doing well. Thus, Indonesia must anticipate the appreciation of US Dollar.

He added that although China was experiencing lower economic growth projection, which is seven percent based on 2015 World economic outlook, the country remains as one of the world’s largest economy. "Economic growth by seven percent in China is categorized as low growth," Agus said.

Previously, Coordinating Minister for Economic Affairs Sofyan Djalil, had asked industries other than oil and gas to boost their exports amidst the oil price decrease so that the trade balance deficit could be reduced. "The government continues to make efforts in increasing non-oil and gas export," he said. "It could be any sectors, including textiles and food."

FAIZ NASRILLAH | URSULA FLORENE SONIA



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