Hanke says stable rupiah key to stability in Indonesia<\/p>\n
SINGAPORE (Dow Jones): Johns Hopkins University economist
\nSteve Hanke warned yesterday that without stabilization of the
\nrupiah, Indonesia could expect continued political turmoil and a
\ngreater trend toward use of the U.S. dollar in the economy, which
\nhe said is taking hold throughout the region.<\/p>\n
Speaking on CNBC Asia from Baltimore, the former adviser to
\npast Indonesian president Soeharto said the situation in
\nIndonesia had \"deteriorated significantly\" since the government
\ndecided against implementing the currency board system he
\nrecommended in February. He said Indonesia was now in a
\n\"revolutionary\" environment.<\/p>\n
\"They have to stabilize the rupiah. Otherwise, the Habibie
\ngovernment will meet the same fate as the Soeharto government,\"
\nhe said.<\/p>\n
Hanke said he was unimpressed with the International Monetary
\nFund's current agreement with the Indonesian government, its
\nfourth, because it doesn't take decisive steps to lift the value
\nof the country's battered currency.<\/p>\n
\"The whole region... is slowly starting to dollarize,\" he
\nadded, \"as Latin America did in the 1980s.\" He indicated that the
\nphenomenon showed no popular confidence in regional currency
\npolicies. \"People are doing it on their own, voting with their
\npocketbooks,\" he said. \"Currencies will remain weak as
\ndollarization increases.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/hanke-says-stable-rupiah-key-to-stability-in-indonesia-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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