IMF Visit Will Not Automatically Increase Rupiah Value against the Dollar
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Kamis, 18 Desember 2003 10:52 WIB
TEMPO Interactive, Jakarta:Coordinating Minister for the EconomyBurhanuddin Abdullah said that the IMF visit to Indonesia would notautomatically increase the value of the rupiah against the U.S. dollar. Thebusiness world, he said, was still waiting to see the program outlined inthe Letter of Intent (LoI) that is to be proposed to the Indonesiangovernment when they meet. "Nothing is automatic, we'll have to talk first,"Burhanuddin said today (5/7).
"The important thing is that the program is considered credible by themarket," Burhanuddin said regarding the significance that is typicallyplaced upon the LoI program. Regarding the increase in interest rates madeby the Bank of Indonesia (BI) , Burhanuddin said that the BI had done thisin fear of imminent inflation.
He sees a need for greater coordination between BI's monetary policy teamandgovernment's fiscal policy decision making process because the macro economyprogram would suffer badly if coordination was weak. "We need to strike abalance between the two policies," he said. (Dian Novita)
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