Airlangga Says It's Not Wise To Buy US Dollars At High Prices

Coordinating Minister for the Economy Airlangga Hartarto. (Photo: Aris Nurjani/VOI)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto said that amidst global uncertainty triggered by the Iranian attack on Israel.

The government will prepare anticipation in dealing with the impact of geopolitical tensions in the Middle East.

Airlangga explained that so far there is nothing to worry about, and don't panic too much to buy United States (US) dollars when the price soars because it is not wise.

"If the dollar situation strengthens again, of course it is not wise to buy dollars at high prices. Of course we need to reduce the need for dollars," he explained at the office of the Coordinating Ministry for the Economy, Thursday, April 18.

According to Airlangga, the government already has instruments in the form of Natural Resources Export Results Funds (DHE SDA) that want to be planted domestically.

"So the existing tools are actually relatively under control," he said.

Airlangga said, there are special notes that are not allowed in the purchase of US dollars, namely for consumptive activities.

"However, we ask that consumptive imports be held back in a situation like this," he explained.

Previously, Minister of State-Owned Enterprises (BUMN) Erick Thohir asked SOEs to take quick steps in minimizing global impacts through a review of capital expenditure operating costs, due debts, corporate action plans, and conducting stress tests in seeing BUMN conditions in the current situation.

Erick asked state-owned banks to proportionally maintain the portion of credit affected by the volatility of the rupiah, interest rates, and oil prices.

He said, SOEs affected by imported raw materials and SOEs with a large portion of foreign debt (in US dollars) such as Pertamina, PLN, BUMN Pharmacy, MIND ID, should optimize large purchases of US dollars in a short time.

"As well as conducting a sensitivity study on principal payments and or interest on debt in the dollar which will mature in the near future," continued Erick.

In addition, Erick conveyed that export market-oriented SOEs such as MIND ID Mining, PTPN plantations can take advantage of this price-added trend to mitigate the erosion of the trade balance.

Erick said that SOEs that have foreign debt or plan to issue instruments in US dollars should review the hedging option to minimize the impact of exchange fluctuations.

"All SOEs are expected to be vigilant and vigilant by monitoring the current situation, given the possibility of an increase in interest rates in the near future," said Erick.