Jokowi Plans Massive Deregulation Following Rupiah Drops

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  • TEMPO.CO, Jakarta - President Joko "Jokowi" Widodo has initiated a plan on massive deregulation in an attempt to strengthen the weakening Rupiah. "I have instructed for a massive deregulation. What can be simplified, we simplify, what's obstructing [will be removed]. I think this kind of moves could motivate all of us," Jokowi said during a National Assembly of the Indonesian Ulema Council in Bandung on Tuesday, August 25, 2015.

    Jokowi affirmed that the government had done anything in its effort to stop the Rupiah exchange rate – which is currently recorded at over Rp 14,000 per US Dollar - from plunging. The President added that Bank Indonesia had also taken steps to strengthen the Rupiah. In addition, Jokowi said that several related ministers have also conducted deregulation to simplify licensing processes.

    Jokowi also called on the public to understand that the weakening Rupiah was not a result of government failed attempts to rescue the currency. "This is not only an internal problem, but there are external factor that are related and affect one other starting from the Greek crises, interest rate hike in the United States, the depreciation of Yuan in China, along with other countries," Jokowi said.

    Jokowi hoped that the public would not be dragged by the economic slowdown. "[…] We must be brave to make breakthroughs to accelerate budget absorption," Jokowi said.