The Ambition of the Government to Increase Infrastructure Becomes a Factor to Reduce Rupiah Exchange Rate

INDUSTRY.co.id - Jakarta, senior economist Faisal Basri said that in addition to external influences, the fall in the rupiah exchange rate is also driven by government's ambitions that boost infrastructure development.

Faisal predicted the weakening of the eagle currency will occur until the end of the year.

"The main source of damaged Rupiah is a government that is too ambitious, beyond its own ability," said Faisal in Jakarta (12/07/2018).

According to him, the government is too jor-rod to build infrastructure beyond the ability of the state. Moreover, the development of infrastructure projects to boost the import of raw materials and capital goods that can not be produced domestically.

For example, the construction project of the Monorail Rapid Transit (MRT) underground line. Indonesia, he said, still had to import drilling machines from Japan.

"In fact, the labor that runs it (drill) is still to be imported, if not wrong from Thailand," said Faisal.

Known, the rupiah exchange rate in interbank transactions in Jakarta on Wednesday morning fell 26 points to Rp14, 393 per US dollar from Rp14.367 per US dollar. With this condition, the government is warned to be vigilant and not underestimate.