Aviliani Indef Economist: DHE Policy Supports Stabilization Of Rupiah Exchange Rate

JAKARTA - Institute for Development of Economics and Finance (Indef) senior economist Aviliani said the export foreign exchange policy (DHE) supports the stabilization of the rupiah exchange rate and inflation control.

"One of the things needed by DHE is to maintain the exchange rate because if we don't maintain the exchange rate with DHE, our difficulty is that the flow of funds is out, the rupiah is weakened, inflation could occur," said Aviliani in a virtual public discussion in Jakarta, quoted from Antara, Tuesday, August 22.

Aviliani said that the fluctuation of the rupiah exchange rate will continue to occur because Indonesia adheres to a free foreign exchange system so that it becomes a challenge for Indonesia to be able to maintain the rupiah exchange rate amidst the large influence of the US dollar exchange rate on the rupiah.

He hopes that the implementation of the DHE policy can be effective in running to maintain the rupiah exchange rate and support Indonesia's economic growth.

"Bank Indonesia's policy with DHE is expected to be realized in December," he said.

Bank Indonesia issued Bank Indonesia Regulation (PBI) Number 7 of 2023 concerning Foreign Exchange Export Results and Import Payment Foreign Exchange which was effective on August 1, 2023. This provision mainly regulates the principles and instruments for the placement of DHE natural resources (SDA) and the regulation of supervision of DHE SDA.

In addition, Aviliani said inflation is still a scourge for world problems in 2024. Even though inflation has decreased, it is still not significant, and it is estimated that the decline in inflation to normal will occur in 2025.

monetary policy in a number of developed countries such as America and Europe so far has not been able to suppress inflation significantly, even until the end of the year inflation is expected to slow down.

According to him, Indonesia needs to prepare a strategy to anticipate inflation problems in 2024 as the government has succeeded in suppressing inflation in the previous year through its energy subsidy policy and controlling food inflation.