USD Rate is not Indicator of Indonesia’s Economy, President Jokowi Says

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 6 Desember 2016
Category: News
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President Jokowi attends the Public Forum (Sarasehan) of 100 Indonesian Economists on Tuesday (6/12), at the Fairmount Hotel, Jakarta

President Jokowi attends the Public Forum (Sarasehan) of 100 Indonesian Economists on Tuesday (6/12), at the Fairmount Hotel, Jakarta

President Joko ‘Jokowi’ Widodo in his remarks at the Public Forum (Sarasehan) of 100 Indonesian Economists on Tuesday (6/12), at the Fairmount Hotel, Jakarta, said that all currencies including Indonesian rupiah weakened against the US dollar after Republican Donald Trump was elected as the President of the United States.

President Jokowi also estimated Trump will implement reflation policy on economy, by strengthening the US economic growth and increasing USD rate inflation. As a result, the President said, the condition of Indonesian rupiah rate will not define the economic condition in Indonesia, but reflect the US economic policy which seems to go nowhere.

President Jokowi reminded all that Indonesia’s export value to the US is only 10 to 11 percent out of Indonesia’s total trading value.

Therefore, the President warned all to not consider the 11 percent as the whole Indonesia’s economic perception because it is only related to the USD and the rupiah.

“If we measure Indonesia’s economy only with the US dollar, the results will be bad, while other countries also have same experiences,” President Jokowi said, adding that the results will be different if Indonesia measures the economy with euro, yuan, or won; and the result will probably be better.

However, Indonesia is used to see USD and rupiah for years, the President said and added that the USD and rupiah are not a correct partner.

Instead, the currencies should compared with our trading partners, particularly the biggest one, President Jokowi said. “If our biggest trading partner is China then rupiah must be compared to yuan or renminbi, if it’s Japan then rupiah must be compared to yen,” President Jokowi said.

President Jokowi reminded all that Indonesia’s export value to the US is only 9 to 10 percent out of our total trading values. Meanwhile, Indonesia’s export value to China is 15 to 15.5 percent, to Europe is 11.4 percent, and to Japan is 10.7 percent out of the total trading values.

Therefore, the President noted that it is really important to educate the people. “We want the economist to give us criticism and inputs, as well as remind us about the matters on Indonesia’s micro and macro economy,” President Jokowi stated.

Also attending the event were, among others, Coordinating Minister for the Economy Darmin Nasution, Minister of Finance Sri Mulyani Indrawati, Minister of State Secretary Pratikno, and Minister of Trade Enggartiasto Lukito.(RAH/OJI/ES)(RAS/EP/YM/Naster)

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