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Economic crisis is nowhere on the horizon: BI
(Kompas/Hendra A Setyawan)Head of Bank Indonesiaâs Economic Policy Directorate research group Yoga Affandi has said that Indonesia is far from any economic crisis, stressing that many countries are currently experiencing currency declines that are worse than Indonesia's
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(Kompas/Hendra A Setyawan) (Kompas/Hendra A Setyawan)
(Kompas/Hendra A Setyawan)
Head of Bank Indonesia's Economic Policy Directorate research group Yoga Affandi has said that Indonesia is far from any economic crisis, stressing that many countries are currently experiencing currency declines that are worse than Indonesia's.
'The rupiah's weakening is not the only indication of an economic crisis. There are many other factors that cause economic crises. It is not fair if we only evaluate the situation based on the weakening currency,' Yoga was quoted by tempo.co as saying in Bengkulu on Friday.
Yoga said the currencies of Brazil, Mexico, South Africa, Turkey and Malaysia suffered more than Indonesia's currency.
He said that the Indonesian people could help strengthen the rupiah by conducting transactions in their local currency.
'This is a global phenomena. It is not only Indonesia that is experiencing this problem. We call this the superdollar phenomenon. We need to reduce our dependency on the US dollar so that we can help the rupiah,' he said, adding that not only should domestic transactions be done in the local currency but international transactions should also be done in rupiah.
He said that there were still many Indonesian businesspeople who used US dollars while conducting transactions with other countries, such as China. 'Our dependency on the US dollar contributes to the rupiah's decline,' he said.
He said that Bank Indonesia had an export-import transaction facility ' a bilateral currency swap agreement -- that allowed transactions to take place without the dollar. 'Regrettably, many businessmen have not used the facility,' he said.
On Friday, the rupiah declined to 14,176 for every dollar, falling further from 14,170 on Thursday. (bbn)(++++)
