The movement of rupiah
exchange rate is getting more difficult to predict even more worried when the position surpassed the level of 14
thousand per dollar.
This Phenomenon is similar to 1998 crisis when rupiah reached 16 thousand per
dollar. The signs were started by raising rupiah sharply last week. Thus, it becomes a burden to the
jokowi’s administration. Because of it, the writer tries to explain why the
currency (Rupiah) is under pressure and getting worse.
the
weakening of the exchange rate that was happening the past few days has huge
impact on the national economy. Though that pressure is not only
happening in indonesia, but also to other currencies.
At least, there are
three factors which indonesia’s currency gets worse both internal factor and
external factor. First, The currency of a country reflects country’s economic
fundamental itself. It means, if the fundamental of a country is bad which
marked by economic slowdown, the currency of a country will be depreciated.
Second, Jokowi’s promises
to accelerate the infrastructure are still vague so that market players or
inverstors are worried to inverst their share to the company as by investing will support
the value of the rupiah. Lastly, investors preferred to cling to the greenback because
of the market’s uncertainty.
To avoid the rupiah from
depreciating further, The goverment try to look for any way out such as the
importance of controlling the exchange rate, maintaining price stability, and
cooperating with central bank “BI”. ‘Moreover, efforts to maintain economic
growth can be done by keeping the people’s purchasing power and also provide
incentives to companies.
In conclusion, by seeing this
condition the memory of 1998 crisis will come alive if goverment doesn’t pay
attention to overcome rupiah’s unstabilization. One of the best ways is
stimulating economy growth. Therefore, dollars can go back to a low and stable
level to encourage the competitiveness and stability of the national economy
forward
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