- dok.pribadi
VIVAnews - Chief of Economists at the Danereksa Research Institute, Purbaya Yudhi Sadewa, reminds about the danger of the national currency's appreciation against US dollar.
"Don't be too overjoyed with the rupiah's appreciation," Yudhi told VIVAnews today, Oct 11.
He warns that rupiah is now too strong at Rp 8,900 against US dollar. "The best value is to near Rp 9,500 against US dollar," he said.
If the national currency is getting too high in value, it will not only strike the Indonesian exported products but also result in the lower prices of imported goods. "Not to mention if the imported products replace the local ones," he said.
Yudhi emphasized the fact that China has just intervened in its national currency to protect the domestic products.
Previous notion was earlier conveyed by economist Dradjad Hari Wibowo. He suggested that the Indonesian government should start depreciating the rupiah as an anticipation toward the global currency appreciation.
"In fact, Indonesia should have depreciated the rupiah since the first quarter of 2010 through a series of fiscal and monetary policies," said Dradjad.
According to him, it's quite late now for Indonesia to deal with the currency appreciation. Ironically, the Ministry of Finance, the Ministry of Trade and Bank Indonesia likely allow the speculative short-term capital inflow flood the market. In fact, this has caused the rupiah to be overvalued.
An IMF Director, Dominique Strauss-Kahn, last week cautioned about the currency wars in several countries. "We're dealing with currency wars," he said.
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Translated by: Bonardo Maulana W
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