The value of the dollar today touched the number Rp 14.211 (based on Reuters). Bank Indonesia (BI) assessed the strengthening of US dollar not only happened in Indonesia, but also other countries.
Is Indonesia the worst country?
Chief Economist Samuel Asset Management (SAM) explained today Indonesia is not the most severely depressed country.
"Indonesia is not the most severe, if the currency depreciated from the US dollar is severe Argentina and Brazil, Indonesia ranked 7th," if seen during the last three years the figure of Rp 14,200 is not the deepest weakening. Because 3 years ago the dollar has penetrated the number Rp 14.653 and nothing happened in the Indonesian economy.
"This is still within the normal range, now it seems very weak, but it happens that there is a demand for dollars for dividend payments and other external factors, in addition to the current account deficit condition also affects the weakening of the rupiah to close the current account deficit should encourage exports. Therefore, the government should encourage efforts to improve the quality of exports by providing policies to establish import substitution places.
In addition, the government should also be able to call foreign companies to invest in Indonesia. This is so that import dependence can be reduced.
"Now the drug factory is 90% imported raw materials, this is how the government should be able to invite investors to open the raw material factory here.This can reduce the demand for imports, as long as the substitution of imports is not yet then the current account deficit will still happen. will always be in contact if the economy grows then imports will strengthen and this will affect the rupiah exchange rate against the US dollar.
"As long as there is no import substitution, the government must invite the factory to produce goods in Indonesia