Minister of Airlangga Called Rupiah Stability Very Important For Industry Performers

INDUSTRY.co.id - Jakarta, Minister of Industry Airlangga Hartarto also highlighted the weakening trend in the rupiah against the US dollar. He said rupiah stability is very important for industry players.

If the rupiah continues to erode, Airlangga said, then the debt could increase. In addition, the weakening of the rupiah can also make production costs more expensive.

This condition will be especially felt by industries whose raw materials are still supported by imported goods. "So, if the unstable currency is certainly not desired by the entrepreneurs," said Airlangga, after attending the Apindo National Conference in Jakarta (24/4/2018) .

Therefore, he hopes Bank Indonesia (BI) can perform its role to make the rupiah stable again.

Previously, Chairman of Indonesian business association (Apindo) Hariyadi Sukamdani claimed to have predicted the rupiah will experience strong pressure. He predicted the weakening of the rupiah against the US dollar will continue to occur until next July.

Hariyadi explained, there are at least three things that make the rupiah against the US dollar almost touching the number Rp 14 thousand. First, because the Fed will raise interest rates.

Secondly, foreign companies in Indonesia have converted their dividends into their own country's currency. Third, the value of national exports did not experience significant growth. Meanwhile, import of raw materials is still quite dominant.

"We have to be careful, although our economic fundamentals are strong, but global factors are quite dominant," Hariyadi said.

The rupiah exchange rate on Tuesday (24/4) has touched the level of Rp 13,900 per US dollar. BI insists will intervene in the market so that the rupiah does not continue to stumble.