Jokowi Holds Meeting To Discuss Rupiah Depreciation

Jakarta (Antara Bali) - President Joko Widodo (Jokowi) held a limited cabinet meeting here on Tuesday evening to discuss current rupiah depreciation.

"Upon arrival from visiting regions President Jokowi wished to know current rupiah condition," Coordinating Minister for Economic Affairs Sofyan Djalil said after the meeting.

At the meeting "Bank Indonesia senior deputy governor explained what has happened on the rupiah lately. Right now it is recorded as the world's fifth worst currency," he said. He said current rupiah depreciation is different from that of 1998 when the cause of the problem was domestic while this time it was external.

Sofyan however said as compared to other currencies such as Euro, the rupiah is strengthening because the US dollar condition was extremely good.

He said the US would increase its interest rate in July after it flowed dollars in a huge amount to the market following financial crisis in 2008 in an effort to stimulate its currency across the world including in Indonesia. "The US now wishes to absorb its dollars again by raising interest rate in July," he said.

Sofyan said in the short term the government would accelerate investment, ease business and improve licensing procedures as well as eradicate investment obstacles to overcome the rupiah depreciation. He said the government would also give tax incentives to foreign companies investing in Indonesia. (WDY)