Airlangga Says Rupiah Weakened by 5 Percent, Economic Fundamentals Still Strong
JAKARTA - Coordinating Minister for the Economy Airlangga Hartarto said Indonesia's current macroeconomic conditions are better than the previous crisis period. He said the rupiah depreciated by around 5 percent, much lower than the past turmoil.
This was conveyed by Airlangga after a limited meeting with President Prabowo Subianto at the Presidential Palace Complex, Jakarta, Friday, May 22.
At the meeting, the President received a number of senior figures, including former Governor of Bank Indonesia Burhanuddin Abdullah and Paskah Suzetta. They shared their experiences in facing economic pressures in the 2004-2014 period, including the 2008 crisis.
Airlangga said the figures conveyed notes about past situations, including the spike in oil prices in 2005 and its impact on inflation and the exchange rate.
"If we check with the context today, our macro situation is relatively better, the fundamentals are stronger, and the rupiah depreciation is around 5 percent," said Airlangga.
According to Airlangga, the government learned from past crisis experiences to anticipate future pressures.
Airlangga said the President asked the government to monitor regulations to strengthen financial conditions and maintain the principle of banking prudence.
He also said the government would review the strengthening of banking capital because the number of banks in Indonesia is quite large.
Airlangga denied that market sentiment was triggered by export agencies and the trade balance.
"No," he said.
He said the JCI which had been corrected was a natural thing. According to him, the correction was related to issuers that were out of the index of rating agencies.
Airlangga also said that the results of the meeting with domestic and foreign business associations regarding export earnings and DSI received a positive response.
According to Airlangga, almost all associations appreciate the government's policy and are ready to cooperate with the government-formed body.