Kadin Agrees to Export Needs to be Encouraged to Overcome the Widening of CAD
By : Ridwan And Aldi Firhand. A | Wednesday, August 15 2018 - 23:05 IWST
Ketua Umum Kadin Rosan Roeslani
INDUSTRY.co.id - Jakarta - Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Rosan Roeslani said, an increase in exports should be encouraged to overcome the widening of the current account deficit (current account deficit / CAD).
"We must increase exports, but for that it is not easy too," Rosan said at a press conference in Jakarta, Tuesday (08/14/2018)
Bank Indonesia recorded a current account deficit in the second quarter of 2018 reaching 8 billion US dollars or three percent of GDP, higher than the previous quarter of 5.7 billion US dollars or 2.2 percent of GDP.
Rosan believes the CAD widening contributed to the weakening of the rupiah against the US dollar. He predicts Indonesia's CAD will still widen to around 25 billion US dollars by the end of 2018.
"Indeed, this CAD issue must be faced together. The business world has also talked a lot with the government," he said.
The weakening of the rupiah, Rosan continued, needs to be utilized to help efforts to boost exports.
He also considered that Indonesia's economic fundamentals were still in good condition.
However, he said that the plan to increase the US Central Bank's benchmark interest rate twice more until the end of 2018 prompted businesses to think about the potential cost of funds.
"If 'swing' from a high currency, it will be difficult for businesses to predict their financial balance going forward," said Rosan.
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