JAKARTA - President Joko Widodo held a closed meeting to discuss the weakening rupiah happening lately, after his visit to the province last week.
"After a visit to the region, President Jokowi want to know the condition of the current weakening rupiah," said Coordinating Minister for the Economy Djalil limited after a meeting at the Presidential Palace Complex, Tuesday.
"Senior deputy of Bank Indonesia (BI) to explain what happened with the last dollars. And is currently listed as the currency IDR number five worst in the entire world," said Sofyan.
The weakening of the rupiah is different when compared with the weakening in 1998. At that time the problem was in the country, but this time the problem is coming from the outside.
However, Sofyan added, when compared to other currencies such as the euro, the rupiah has strengthened, because the US financial conditions that are too good.
He said the US will raise interest rates next July, because since the financial crisis hit in 2008, the US dollar poured with such large numbers to the market in an effort to stimulate its currency around the world, which include entry into Indonesia.
"To that end, the US dollar would reabsorb them to raise interest rates next July," said Sofyan.
There is also a short-term effort that will be taken by the government to address this weakening rupiah, including by accelerating investment, facilitate business, clearing all existing licensing issues and resolve obstacles to investment in order to keep it running.
In addition, the government will also provide tax incentives to foreign companies that reinvest dividends to Indonesia.
He said the president also wants dollars Joko Widodo more stable, although all countries want to strengthen its currency.
The presence of CMEA Djalil at the Presidential Palace to attend the closed meeting with President Joko Widodo to discuss the results of his visit to Lhokseumawe and Sabang, Aceh last week.
Besides Sofyan, Trade Minister Rachmat Gobel, Secretary of State Pratikno, and Finance Minister Bambang Brodjonegoro also present in the meeting with President Joko Widodo together senior deputy central bank and the Director General of Taxation.
"After a visit to the region, President Jokowi want to know the condition of the current weakening rupiah," said Coordinating Minister for the Economy Djalil limited after a meeting at the Presidential Palace Complex, Tuesday.
"Senior deputy of Bank Indonesia (BI) to explain what happened with the last dollars. And is currently listed as the currency IDR number five worst in the entire world," said Sofyan.
The weakening of the rupiah is different when compared with the weakening in 1998. At that time the problem was in the country, but this time the problem is coming from the outside.
However, Sofyan added, when compared to other currencies such as the euro, the rupiah has strengthened, because the US financial conditions that are too good.
He said the US will raise interest rates next July, because since the financial crisis hit in 2008, the US dollar poured with such large numbers to the market in an effort to stimulate its currency around the world, which include entry into Indonesia.
"To that end, the US dollar would reabsorb them to raise interest rates next July," said Sofyan.
There is also a short-term effort that will be taken by the government to address this weakening rupiah, including by accelerating investment, facilitate business, clearing all existing licensing issues and resolve obstacles to investment in order to keep it running.
In addition, the government will also provide tax incentives to foreign companies that reinvest dividends to Indonesia.
He said the president also wants dollars Joko Widodo more stable, although all countries want to strengthen its currency.
The presence of CMEA Djalil at the Presidential Palace to attend the closed meeting with President Joko Widodo to discuss the results of his visit to Lhokseumawe and Sabang, Aceh last week.
Besides Sofyan, Trade Minister Rachmat Gobel, Secretary of State Pratikno, and Finance Minister Bambang Brodjonegoro also present in the meeting with President Joko Widodo together senior deputy central bank and the Director General of Taxation.
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