JAKARTA, [IFN]- Vice Chairman of the Chamber of Commerce and Industry (Kadin) Indonesia empowerment field area, Natsir Mansour stated, the weakening rupiah against the US dollar occurred because the government never fix four economic fundamentals.
"The first factor is the import of raw materials for the manufacturing industry which reached 75%. During this time, the government does not fix the upstream industry so that the manufacturing industry has always imported raw materials and downstream industries program is not going well, "he said in Jakarta, Tuesday, March 31.
The second factor, according Natsir, is the import of oil and gas (oil) is quite high. During this time, to meet the needs of fuel oil (BBM) is a national, government continues to import.
"The ratio of imports over domestic production reached 70% versus 30%, in contrast to 20 years ago that only 30% of imports and domestic production reached 70%," he explained.
The third factor, further Natsir, is the development of the food industry is not maximal.
"To meet the needs of national food, the share of imports reached 65% compared to domestic production," he said. The fourth factor is largely service industry still relies on the US dollar to trade.
"For example, aircraft of all costs using US dollars and we bought tickets mengggunakan dollars. It also makes high depreciation, "he said.
Natsir added, the fundamental factors make Indonesia's trade balance is always a deficit. As a result, the exchange rate continued to pressure.
"The government should be able to fix these four factors, the exchange rate could improve," he said.
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