Rupiah Appreciation to Boost Export in Manufacturing: BI
10 October 2015 13:04 WIB
TEMPO.CO, Jakarta - Bank Indonesia viewed that the current rupiah exchange would remain competitive to boost exports in manufacturing.
Bank Indonesia Senior Deputy Governor Mirza Adityaswara said that the rupiah’s appreciation was triggered by a positive sentiment that increased investors’ trust in the Indonesian government.
“The rupiah has been appreciated significantly over the last three days because many market makers are trying to cut their losses, and some of them doubt that the rupiah exchange will go as high as Rp13,900 per US dollar,” Mirza said on Saturday, October 10, 2015.
Mirza explained that the assumption of the rupiah exchange against the US dollar was made when the economy was slowing down and gave pressure to the rupiah. Currently, Mirza added, the rupiah would remain competitive to boost exports in manufacturing and control the inflation rate.
“The inflation rate due to the increasing price of imported products will be contained by the rupiah appreciation,” he added.
With a deflation in September, Mirza said that the inflation rate would stand at somewhere between 4.1 percent and 4.3 percent.
“The inflation rate would be favorable. Data on imports showed monthly surplus so that the current account deficit will be at slightly above 2 percent by the end of this year,” Mirza explained.
BISNIS.COM