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Jakarta Post

Rupiah weakening purely due to external factors: Darmin

  • News Desk

    The Jakarta Post

Jakarta   /   Fri, August 31, 2018   /   06:44 pm
Rupiah weakening purely due to external factors: Darmin Coordinating Economic Minister Darmin Nasution. (JP/Anton Hermansyah)

Coordinating Economic Minister Darmin Nasution has said the rupiah's weakening to Rp 14,700 per United States dollar on Friday was purely because of external factors, particularly the plunge of the Argentinian currency.

He said the Argentinian crisis had weakened nearly all currencies in Southeast Asia and other developing countries.

“[The currencies] in Malaysia and Thailand have also been weakening,” said Darmin as reported by   

He expressed hope that Argentina would recover soon, as the IMF had provided the country US$50 billion.

He said the impact of the Argentinian crisis was less severe on the rupiah than the impact of the Turkish crisis, because Indonesian relations with the South American country was not as close as relations with Turkey.

Darmin said the rupiah's exchange rate would still be under pressure from the normalization of American monetary policy, which is expected to increase its reference rate by 1.5 percent up to 2019.

“Of course, we have to prepare anticipatory measures because we will be affected – our exchange rate, our interest rate. Maybe we will also be affected by imported inflation,” he said.

 He, however, stressed all pressure on the rupiah was external. “There is no internal pressure,” he added. (bbn)