JAKARTA - Minister of Finance (Menkeu) Purbaya Yudhi Sadewa said Indonesia was not heading towards a financial and monetary economic crisis like the 1997-1998 situation.
"We are not heading towards a situation like 1997-98 again. Our fiscal is good, the economy is good, there are only negative sentiments here and there that interfere a little with the exchange rate, but it should be able to be improved with a better combination between the government, the Ministry of Finance and the central bank," he said in the agenda of a working visit to the Tanjung Priok Customs Office, Jakarta, Saturday, June 6, reported by ANTARA.
On Thursday (4/6) trading, the rupiah exchange rate for the first time broke through Rp18 thousand per US dollar. This weakening of the rupiah has raised concerns from some parties about the potential for a repeat of the economic crisis in Indonesia.
However, Purbaya ensured that strengthening the synchronization between fiscal and monetary policies could further encourage the strengthening of the rupiah.
The synchronization in question is the increase in the attractiveness of the yield of domestic financial instruments to encourage the return of foreign capital inflows, as well as maintaining the adequacy of liquidity in the money market and the banking sector through the management of government cash that is still placed at Bank Indonesia (BI), accompanied by an increase in the remuneration paid by BI to the government.
The synchronization between related stakeholders is considered to be able to reduce production costs experienced by business actors that depend on imported raw materials.
"We will make sure that this happens in the near future," said the Minister of Finance.
"What I can say now is that the fiscal is good, the economy is good, the leadership of the President is still strong enough to ensure that everything goes according to the President's development strategy," he said.
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