Indonesia`s economic fundamental strong to damp down impact of terror

M H A Ridhwan (1) (1/)

The dollar appreciation had been at the expense of the national currencies of developing economies such as rupiah, Thai Bath, Turkish Lira , etc.

Manado, N. Sulawesi, (Antaranews Sulut) - A Deputy Director at the Bank Indonesia Representative Office for North Sulawesi MHA Ridhwan said Indonesia`s economic fundamental is strong enough to damp down the impact of the terror attacks on the country over the past week.

"We don`t have to be worried as Indonesia`s economic fundamental is relatively good and strong," Ridhwan said here on Tuesday.

He said the rupiah weakening is caused mainly by external pressure with the rising U.S. dollar to follow the economic recovery of the world`s largest economy.

The dollar appreciation had been at the expense of the national currencies of developing economies such as rupiah, Thai Bath, Turkish Lira , etc.

He said rupiah still fares much better than the currencies of most developing economies, citing Rupiah lost only 1.2 percent of its value as against Bath`s loss of 1.76 percent and Turkish Lira`s lost of 5.27 percent .

"Therefore , rupiah is not the only one losing against the U.S. dollar and the terror attacks in Surabaya were not the causes," he said.

He said other countries including European countries are also facing problems over security and terrorism.

"We are confident that the market sentiment in the stock market is temporary," he added.

Bank Indonesia , therefore, is concerned only with global economic dynamism which is potential to become a mid or long term challenge to be faced by Indonesia, he said.

Bank Indonesia will be firmed and consistent in directing its monetary policy toward creating stability, he added.

He said Bank Indonesia has wide room for adjustment of its BI 7-Daya Reverse Repo Rate to the situation, adding the response would be consistent and pre-emptive to ensure stability.

The Central Bank will also remain consistent in giving support to ensure that the market mechanism would run effectively and efficiently that liquidity in the foreign exchange market and financial market is well protected. (AS)

(T.SYS/B/H-ASG/F001) 15-05-2018 11:35:37