Mrs. Ani, Why Is The US Dollar Rising High Enough To Beat Rupiah?

Minister of Finance Sri Mulyani (Photo: dock. Antara)

JAKARTA - Finance Minister Sri Mulyani Indrawati also attended a coordination meeting with the Acting Regional Head organized by the Ministry of Home Affairs.

Quoted on the Instagram account @smindrawati, Ani, her nickname, said that during the meeting, she often received questions about why the United States (US) dollar exchange rate rose high against Rupiah.

"Yesterday many asked me, Why did the US Dollar exchange rate increase quite high?" Sri Mulyani was quoted as saying from her Instagram account, Tuesday, October 31.

"This is also what I explained to Regional Leadership Officials at the Coordination Meeting held by Mr. Tito Karnavian with the ranks of the Ministry of Home Affairs this afternoon," he added.

Sri Mulyani explained that the current situation was caused by several factors, especially from the US, with the pressure of the economic situation in the superpower.

He added that the US government experienced a very wide budget deficit and fluctuations in the political situation which led to a high increase in interest rates, which currently touched 5 percent.

"What is the impact? This phenomenon has caused widespread withdrawals of US dollars from all over the world to be invested back in America. Thus, the US dollar index strengthens, while other currencies weaken," he explained.

In addition, Sri Mulyani explained that not only America, the pressure from other largest economies such as China and the European Union also had an impact on almost all countries in the world, including Indonesia.

"However, our situation is still relatively good when compared to other countries. This is because the state budget works extraordinarily hard as a shock absorber, so that we can reduce the pressure from outside and do not hit the community directly," explained Sri Mulyani.

Sri Mulyani said regional leadership officials are expected to participate in carrying out according to President Jokowi's direction, especially in the remaining 2 months of 2023. Furthermore, she added that the APBN will expand to protect the community and the economy from the pressures of the global economic situation.

"I hope the local government will also optimize the APBD to support this expansion step. We at @kemenkeuri will always be ready to provide support," he concluded.