BI Urges Public to Lower Expenditures

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  • Ilustrasi kurs rupiah dan mata uang Indonesia. Getty Images

    Ilustrasi kurs rupiah dan mata uang Indonesia. Getty Images

    TEMPO.CO, Jakarta - In response to the weakening Rupiah against US Dollar, Bank Indonesia urged the public to decrease expenditures because excessive consumption level will put heavier pressure to the market, which in turn drive prices and inflation rates higher.

    "Controlling consumption level will not put pressure on the market, therefore we can control inflation rate," said Bambang Himawan, Head of Bengkulu ranch of Bank Indonesia on Friday, August 28, 2015.

    Bambang also encouraged the public to remain calm in dealing with the current economic condition. "Bank Indonesia will be on standby at the money market to focus on short-term issues," Bambang said.

    Bambang said that today's economic condition is much better compared to the economic crisis back in 1998. Bambang added that the government has sufficient foreign exchange reserves for import purposes for the next six to eight months.

    Bambang admitted that the weakening Rupiah would inevitably put pressure on exporters and importers. However, according to Bambang, it would not lead to massive layoffs.

    Christine R. Sidabutar, Deputy Head of the Bengkulu Branch of Bank Indonesia said that using local products can be one of the steps to overcome the weakening Rupiah. "That way we could reduce our dependence on products bought using US Dollars," Christine said.

    PHESI ESTER JULIKAWATI