Business Have Ways to Deal with Weakening Rupiah: Minister

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  • Ilustrasi Rupiah. ANTARA/Yudhi Mahatma

    Ilustrasi Rupiah. ANTARA/Yudhi Mahatma

    TEMPO.CO, Jakarta - The Rupiah's recent decline to Rp 13,800 against the US dollar on Wednesday, August 12, could potentially have severe impacts on the industry sector, particularly on companies depending on imported raw materials.

    Industry Minister Saleh Husin believes that business owners would have their own way to deal with the weakening rupiah.

    “Business owners must have been prepared to escape from the situation. It’s a matter of perspective. Exporters would see this as an opportunity,” Saleh said on Wednesday.

    However, Saleh admitted that importers would not be happy with the situation.

    Rupiah continued to weaken to the lowest level since 1998. On Wednesday, rupiah opened at Rp 13,800 and continued to weaken when President Joko Widodo announced cabinet reshuffle.

    Economists viewed that the weakening was the effect of Yuan devaluation by China, making investors sold more rupiah-denominated portfolios. Bank Indonesia saw that the rupiah had dropped significantly over several weeks.

    “It’s way below its fundamental value,” BI Governor Agus Martowardojo said in Jakarta.

    Agus explained that Bank Indonesia has made efforts to stabilize Rupiah by optimizing policy mix and coordinating with the government.