Rupiah value could burden exports

The chairman of the Fixed Committee on the Development of Primary Agriculture Industry, Adhi S. Lukman, said that the rupiah-dollar exchange rate of Rp 8,500 to US$1 was burdensome for exporters.

"Frankly, this exchange rate is tough,” he said on Friday as reported by kompas.com.

He added that it would be hard on exporters if the exchange rate were to fall below Rp 8,500 per dollar because the prices of imports did not fall with it.

“If [the exchange rate] is lower than Rp 8,500 [per dollar], that would also be heavy on exports,” he said, adding that the exchange rate should be maintained at between Rp 8,500–9,000.

The rupiah-dollar exchange rate has weakened throughout the week because foreign investors have reduced their ownership of domestic assets.