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Rupiah decline could lead to budget surplus: Minister
Finance Minister Bambang Brodjonegoro has said the depreciation of the rupiah against the US dollar could create a surplus of up to Rp 2
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F
inance Minister Bambang Brodjonegoro has said the depreciation of the rupiah against the US dollar could create a surplus of up to Rp 2.3 trillion (US$174 million) in the 2015 State Budget (APBN).
"If the exchange rate weakens [...] while other macro economic assumptions do not show any changes, the APBN surplus will increase by Rp 2.3 trillion," he said as quoted by Antara in a press conference in Jakarta on Tuesday.
Bambang said the estimated surplus figures came from additional revenues from oil and gas and mining royalties, which benefited from the weakening of the rupiah, minus additional loan interest payments.
"The difference is a surplus to our budget. This shows that the weakening of the rupiah may not harm our budget," he said.
Bambang explained that even if there were fiscal risks in 2015, they were related more to tax revenue targets.
Still, the minister said, the government would not take advantage of the depreciation of the rupiah against the US dollar because it would be much better if the rupiah stopped fluctuating and became more stable in line with its fundamental value.
"The most important thing for us is its macro stability. The rupiah exchange rate must really reflect its fundamental value so that exports can increase and the current account deficit can be contained," he said.
Bambang further asserted that the government would continue to monitor the movement of the rupiah exchange rate and would draw up anticipatory measures ahead of global economic pressures, although the current conditions were still relatively conducive.
"The current situation is still well under control; there is no need to worry too much. The current conditions are different to those in 1998," he said.
Finance Ministry data shows that since the start of the year the rupiah has depreciated by 4.81 percent (year-to-date) against the dollar, triggered by the strengthening of the US currency alongside economic improvements in that country. The rupiah declined on Tuesday afternoon by 51 points to Rp 13,076 per dollar from Rp 13,025. (ebf)(+++)
