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By : Pramitha Prameswari
STRATEGIC ASSESMMENT-Today, one US dollar equals with Rp 14.950,- and it is the worst position of Rupiah which has been happening and the government has gotten dizy and stress to overcome those crucial issues. The slowdown of Rupiah currency may politicize by “government opposition” to downgrade incumbent’s image during the political years.
Basically, the dropshot of Rupiah currency is triggered by an external factors such as the impacts of the US vs China trade war and the policy of Donald Trump’s government to play “currency war” through globally the Fed’s policy to increase US dollar against whatever currency countries and some of people have predicted Trump’s government would give “special lesson” for Jokowi’s administration because the last has made of the blunder policy through 51 percent divestification of Freeport’s stocks. Many people believe in “political rumors” which stated if Freeport’s interest had been meddled by Indonesia’s government, the US will punish them through deadly political and economical policies and sanctions.
Politically, the degradation of Rupiah exchange rates could make people distrust on the capability of government to make stable Rupiah exchange rates against dollar. The distrust to the government will be capitalized to make social unrest such as 1997 incident before the topple of Soeharto regime era.
The government must hurry up to make cleaver and smart policy to strengthening Rupiah exchange rate. Many strategies could be implemented such as to erase unefficient task forces which were made at several ministries or state agencies, to boost export output through giving tax holliday for the enterprises which producing an export products, to attract foreign direct investment through creating easy doing business climate, making monetary and fiscal policies which can guarantee Indonesia’s devisa reserves etc.
I think one of strategy which was readied by the government to strengthening Rupiah through rising or hiking subsidized oil and gas prices, it is not smart policy because its could be created social unrest and the slowdown of people prosperity. Any comment else?
The writer is an economic issues observer. Living in Mranggen, Semarang, Central Java.