Weak yuan not slowing RI's exports<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
While a stronger yuan would help bolster Indonesia's export
\ncompetitiveness, the undervalued Chinese currency has never been
\nthe main reason local manufacturers end up on the losing side
\nagainst China in the global market.<\/p>\n
"Chinese products are superior to ours, even before we speak
\nabout the value of the currency. They have relatively cheaper
\nworkers with higher productivity, so entering the market their
\nprices are already cheaper than ours.<\/p>\n
"Since the emergence of China, a number of factories here --
\nmainly producing textiles and shoes -- have felt the impact, but
\nnot as a result of the weak yuan," Fauzi Ichsan, StanChart
\neconomist, told The Jakarta Post on Wednesday.<\/p>\n
He was responding to calls from countries around the world for
\nChina to revalue the yuan because the unit was undervalued,
\nmaking manufacturing products from other countries less
\ncompetitive against Chinese-made products.<\/p>\n
The rupiah, for example, has strengthened rapidly to about Rp
\n8,600 against the US dollar from about Rp 10,400 two years ago.<\/p>\n
However, Fauzi said, a stronger yuan would also result in
\nstronger currencies around the region, including Indonesia.<\/p>\n
"If the yuan strengthens, then there will be more confidence
\nin (China's) economy, which will led to more confidence in Asian
\neconomies. This would provide the impetus for regional currencies
\nto strengthen as well, including the rupiah," he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/weak-yuan-not-slowing-ris-exports-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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