R

upiah falls? The grassroots level does not understand; it is only the speculators who know about it. So what can we do? In recent days, the rupiah has experienced tremendous pressure, closing at 12,725 per US dollar on Dec. 16, the lowest since 1998. Economists say the cause is that our economic fundamentals are not strong and it is also due to how easily foreign investors withdraw their money in the form of dollars, so we lack dollars.

They argue that, if left too long, it will be dangerous, another case for the government. The weakening rupiah need not cause worry because it is only temporary, as world oil prices are also temporary. Citing Reuters data, since the beginning of the year the rupiah has depreciated by 4.1 percent. The weakening of the rupiah against the dollar recently, according to observers, has been caused by two main things.

First, the effect of the tapering-off policy of the US Federal Reserve'€™s quantitative easing because it considered that the US economy has improved, so there is repatriation of dollars from emerging markets. Second, the US dollar demand in the country increased ahead of the end of the year because corporations need to pay their debts and distribute dividends. Strengthening of the US dollar in the global market makes many countries'€™ currencies unsteady.

It is not only the rupiah, but similar pressures are also being experienced by the Chinese yuan by 2.3 percent, a 3.9 percent drop for the Singapore dollar, the Malaysian ringgit fell 6.7 percent, 0.7 percent negative Thai baht, the Korean won fell 3.4 percent, the Russian ruble by 10.2 percent and the Japanese yen weakened the most by 12.3 percent. The rupiah weakening is usually a threat to a country that has high import dependence. The needs of the majority of raw materials are imported; likewise, for the payment of debts abroad.

So in this situation, with a hidden wisdom, we can strengthen the nation'€™s domestic financing. Amid the downturn of the dollar, there is a silver lining also. First, for Indonesian workers abroad, salaries should be doubled with the weak rupiah. Second, facing the ASEAN free market in 2015, goods from overseas cannot go in vain if the rupiah weakens. The price of imported products is so expensive, so that local products can be more competitive.

Third, export goods finish competitively. Especially for export commodities, such as cocoa, coffee, tea, coconut and cinnamon, as well as the tourism sector. In Bali for example, more and more tourists will come because the cost of travel in the country is getting cheaper. It should be noted from this situation that Indonesia'€™s weakening currency cannot be assessed as a whole. Therefore, each case will have a different impact.

Moreover, the exchange rate is still fluctuating. So it cannot be used as a benchmark for the condition of the economy; the most important thing is the readiness of the government in issuing anticipatory policies that the rupiah is stable and does not depreciate too sharply in the short term. The rupiah may be volatile and may be weakened, but although the rupiah is weaker, people must be strong. People have to struggle to get out of this crisis! Let'€™s make this situation like a blessing in disguise, something that at first seems bad, but later turns out to be beneficial, so we do not get too worried about this situation.

Ruli Alqodri Mustafa
Cilegon, Banten