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ILLUSTRATION. Building of the Bank of Indonesia
KONTAN.CO.ID – JAKARTA. The recent weakening of the rupiah exchange rate is considered a global impact. Therefore, economists judge in the short term, Bank Indonesia will consider preemptive policy in response to the latest developments in US interest rates after the June 13-14 FOMC meeting.
Josua Pardede, economist at Permata Bank, said that the Bank of Indonesia should continue to encourage Indonesia's macroeconomic stability, especially the stability of the rupee in the short term and consider the policy Preventative US interest after the FOMC meeting from June 13 to 14.
According to him, the weakening of the rupee against the US dollar is currently more due to global factors. The strengthening of the US dollar was still motivated by the normalization of the monetary policy of the US central bank and the absence of a trade war between the United States and China.
Concerns of the trade war caused the weakening of the Chinese yuan.
In addition to focusing on stabilizing the rupee in the near term, BI is expected to tighten monetary policy by considering the growing current account deficit in 2018 at 2.2-2.3 percent of GDP. "This is indicated by the evolution of the trade balance which reached a deficit of 2.8 billion US dollars between January and May 2018."
The tightening of the monetary policy of the Indonesian Bank is necessary to maintain macroeconomic stability in the short term the exit of foreign funds from the domestic financial market.
"Over a calendar year, foreign investors made net sales of $ 3.8 billion on the stock and bond markets.In addition to tightening monetary policy, BI will also optimize its policy mix by relaxing its macro-prudential policy. demand for bank loans, especially consumer loans, "said Josua.
Reporter: Patricius Dewo
Writer: Herlina Kartika
MACROECONOMY
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