Faisal Basri: Rupiah does not get stronger because of our sweat …

JAKARTA, KOMPAS.com – Economist Faisal Basri estimated that the recent strengthening of the rupee exchange rate was not due to the efforts of the government, but rather to the incessant withdrawal of debt.

Debt withdrawal has increased the flow of capital in Indonesia, rupee demand has increased so that the rupee exchange rate has been taken into account.

"It seems that the public debt has increased, leading to an increase in the debt and helping the exchange rate of the rupee," he said at a conference on Indonesia's economic projections in Jakarta on Wednesday. (11.28.2018).

"So, remember that the rupee has improved not because of our sweat, but because of the debt," he continued.

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Faisal said deleveraging was one of the other investments. Like direct investments and portfolios, other investments can also affect the exchange rate of the rupee.

In 2017, he said, deleveraging was less important than repayment of debt. But this year, he said, the government was more inclined to attract debt.

Regarding the rupee, Faisal said that between January and September 2018, the exchange rate of the rupee was depressed due to a minimum inflow of $ 11 billion of capital in Indonesia. While the current account deficit reached 22 billion dollars.

This is different from 2017. At that time, the current account deficit was $ 17 billion. Meanwhile, the capital entering has reached 29 billion dollars.

"Now, $ 22 billion up in September, the deficit, the money coming in is only $ 11 billion. tired it's rupiah, "continued Faisal.