Jakarta (Antara Bali) - Economic observer Latif Adam of the Indonesian Institute of
Sciences (LIPI) said the weakening of local currency rupiah against the
US dollar could boost Indonesias exports because Indonesias products
have become cheaper.
"This is an opportunity for Indonesia to increase its exports
because its products have become cheaper in the world market as the
rupiah is depreciated," Latif said here on Tuesday.
He said that Indonesia could increase its exports if it conducted market and product diversification.
The economic observer is of the view that if Indonesias exports
become strong, it will have an impact on the stability of rupiah as both
(exports and weakening of the rupiah) have causality relations.
"Theoretically, Indonesias exports should increase," he said.
However, he stressed that some of Indonesias export products used
imported raw materials, so it could not be generalized that all of
Indonesias product exports will increase.
The weakening of the rupiah should serve as a disincentive for its
imports and as an incentive for its exports, yet the structure of
Indonesias industries still depended on imports, he asserted.(WDY)
Weakening of Rupiah Could Boost Exports: Observer
Rabu, 2 Juli 2014 8:33 WIB
