Cabinet Secretary Comments on the Strengthening of Rupiah, Fuel Price

Cabinet Secretary Pramono Anung delivers statement to the reporters, at his working offcice, Jakarta, on Friday (11/3) afternoon

In his statement to reporters on Friday (11/3) afternoon at his office, Cabinet Secretary Pramono Anung also gave explanation on the strengthening of rupiah against foreign currencies, particularly US dollar, and the issue of fuel price.

Pramono assessed that overall, the rupiah is getting stronger against US dollar due to the 1^st to 10^th Economic Policy Packages launched by the Government and the policy packages have brought global trust to Indonesia’s market and economy.

According to Pramono, the trust is reflected in the consistent strengthening of the rupiah and Composite Stock Price Index (IHSG), while the main indication is the rise of foreign direct investment.

“I suppose it is not true if in the future, the strengthening of rupiah is not considered as the impact of global trust to Indonesia’s market and economy,” Pramono said, adding that the Government is now formulating and simplifying permits as well as making people more comfortable to invest in Indonesia.

Pramono added that it is reflected when many investors started to invest in Indonesia after President Joko “Jokowi” Widodo launched 10 series of economic packages.

Pramono went on to say that the strengthening of rupiah, IHSG, and macro economy must be maintained by the Government in order to make economic growth in the first quarter of this year exceed 5 percent.

“That must be addressed clearly and carefully and we also have to realize the main or primary purpose of our economy,” said Pramono.

Asked whether the strengthening of rupiah will affect export and import sectors or not, Pramono said that Indonesia’s export and import growth must be maintained.

According to Pramono, if Indonesia wants its economic growth exceeds 5.3 percent, the Government must maintain our export and import.

Pramono added that beside implementing several points in the 1^st to 10^th economic policy packages, the Government in the near future will begin to reorganize, particularly policies related to ease of doing business and push down gini ratio or the level of gap between the rich and the poor.

“Therefore, several programs to address the poverty including Smallholder Business Credit (KUR) and others will be prioritized by the Government,” Pramono asserted.

Meanwhile, commenting on fuel price, Pramono said that the Government could not determine it because  it is determined by global fuel price.

“We are not the major player, we are just the follower and bench mark from global fuel price,” Pramono said.

Pramono explained that with today’s global economic turbulence conditions, measures to maintain economic stability in the country must become the main concern.

Pramono further said that the Government needs to have other revenues beside from natural resources which have been our mainstay, such as coal, palm oil, and others as anticipation acts.

“Therefore, the Government must have other instruments in order to increase our revenues on taxation,” Pramono concluded. (FID/NIA/ES) (RAS/EP/YM/Naster)