Rupiah too weak: Soedradjad<\/p>\n
HONG KONG (AP): Indonesia's former Bank Indonesia (BI)
\ngovernor J. Soedradjad Djiwandono said yesterday that the recent
\nweakening of rupiah was caused purely by social unrest and that
\nit should be stronger.<\/p>\n
Speaking after a conference on Asia's economies in Hong Kong,
\nSoedradjad said international investors have a long and
\ninsatiable wish list which Indonesia found it almost impossible
\nto meet.<\/p>\n
He said the rupiah should have strengthened after Indonesia
\ndelivered the promised reforms and the International Monetary
\nFund agreed to disburse the aid money.<\/p>\n
\"Instead, investors are now focusing on the social and
\npolitical factor,\" he said. \"The market is demanding a lot and
\none can't produce everything in one go.\"<\/p>\n
The Indonesian currency closed at 9,620 rupiah to the dollar
\nyesterday, down from its closing level Wednesday of 9,050 rupiah,
\nas rioting spread from the North Sumatra city of Medan to nearby
\ntowns.<\/p>\n
The rupiah has fallen more than 16 percent since Tuesday when
\nprice rises took effect as part of a wider economic reform
\npackage to win financial aid from the International Monetary
\nFund.<\/p>\n
Soedradjad said he was surprised that the first budget
\ndelivered by President Soeharto in January was widely denounced
\nby the international community.<\/p>\n
\"It said it was a lousy budget without looking into some of
\nthe details which were good,\" Soedradjad said. \"When
\ninternational confidence is lost, everything is black and white.\"<\/p>\n
He said the immediate concern of Indonesia is \"to survive.\"<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/rupiah-too-weak-soedradjad-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }