Minister: Rupiah Decline Must be Reviewed

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  • Menteri Keuangan Bambang Brodjonegoro saat menggelar jumpa pers di Jakarta, 2 Juli 2015. ANTARA/Vitalis Yogi Trisna

    Menteri Keuangan Bambang Brodjonegoro saat menggelar jumpa pers di Jakarta, 2 Juli 2015. ANTARA/Vitalis Yogi Trisna

    TEMPO.CO, Jakarta - Finance Minister Bambang Brodjonegoro said that the cause of the declining Rupiah exchange rate must be reviewed, whether it was related to the cabinet reshuffle of the economic condition.

    "[Rupiah] is still under pressure, and we have coordinated with Bank Indonesia Governor. We agreed that the condition is not acceptable, so the government must do something," Bambang said at the Presidential Palace complex on Wednesday, August 12, 2015.

    The Finance Ministry and Bank Indonesia, Bambang added, would be able to address the issue by issuing state bonds.

    "There is no need for stabilization framework. It would be necessary when the [bond's] yield exceeded a certain level," Bambang said.

    Bambang said that the government must be able to overturn the public's view on the new economic team. Bambang said that the new economic team was formed to address the ongoing economic slowdown.

    Bambang explained that global factors and Yuan devaluation by China also generated a negative impact towards Indonesia's economic condition. According to Bambang, Yuan devaluation had caused The Fed to hesitate to increase its interest rate.

    "If [The Fed] increased its interest rate, [the US Dollar] will become stronger against all currencies," Bambang said.

    ALI HIDAYAT