JAKARTA - The 6th Coordinating Minister for Economic, Financial and Industrial Affairs (Ekuin) (1998-1999) Ginandjar Kartasasmita revealed that the way the government during the 1998 reform restored the rupiah exchange rate, which at that time soared to the level of Rp15,000.
According to Ginandjar, the main thing that was done at that time was to restore trust (trust) from the community.
"So, regarding the crisis, it has happened many times. The most important answer is to restore confidence. Market confidence in our economy, the confidence of the Indonesian people in the government," said Ginandjar in a press conference launching the book Ginandjar Kartasasmita's Dedication from Time to Time in Jakarta, Thursday, April 9.
In the book, Ginandjar sees that the economic crisis that hit Indonesia in the 1997-1998 period was not merely a monetary turmoil or exchange rate fluctuations, but a fundamental problem rooted in the loss of market confidence.
"The weakening of the rupiah exchange rate is the most painful symptom of the 1997-1998 crisis. The free fall of the rupiah describes the situation as a moment when the market really loses confidence," he said, quoted from the book.
During the 1998 reform period, said Ginandjar, the Indonesian government received assistance from various international institutions such as the International Monetary Fund (IMF) to the World Bank to help restore economic conditions.
"We are certainly assisted by international institutions, the IMF. Why? Because at that time our foreign exchange was exhausted, it kept coming out. Because the foreign exchange was bought, bought, so it was empty in the banks. So, for a while, we can get foreign exchange support from the IMF, World Bank and indeed it is required with various conditions. Therefore, we need to keep the rupiah (exchange rate) from falling more and slowly increasing," he explained.
In addition, Ginandjar also stated that cooperation between ministers, especially in the economic sector, which could be maintained well at that time, was the key to the government being able to strengthen the rupiah exchange rate.
"The main thing, right, the Ministry of Finance, Bank Indonesia. So, confidence in the rupiah must return, so people no longer throw away the rupiah, buy dollars, but return to buying the rupiah for investment, imports and so on," he said.
In the launch of the book, senior economist Miranda S. Goeltom was also present. He revealed Ginandjar's strong and centralized leadership style, especially when he served as a coordinating minister.
According to him, at that time the coordination between ministers was very solid, even meetings could last until the early hours of the morning.
"If the Coordinating Minister calls a meeting, all ministers will definitely come. We work until the morning," said Miranda.
Miranda assessed that in a crisis situation, Ginandjar was able to take control and ensure that everything went according to the desired direction.
"Yang lain banyak takut. Akhirnya beliau take care of everything," tutur dia.
Miranda admitted that Ginandjar's intelligence in reading the situation, even outside his field of expertise.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
