Why is the rupiah weakening?<\/p>\n
From Warta Kota<\/p>\n
Both economic players and ordinary people are seized with
\nworry about the weakening rupiah. There is fear that the exchange
\nrate of the rupiah will continue to drop against the U.S. dollar
\nso that the price of daily commodities will likewise
\nuncontrollably soar, as before.<\/p>\n
This phenomenon is attributable to many causes, such as
\nsecurity, politics and the law. The latest example is the
\ntemporary closure of the Arun gas plant (in Aceh) because of poor
\nsecurity in the area. As a result, the government will sustain
\nbig losses because this export commodity is directly related to
\nthe government's U.S. dollar income.<\/p>\n
Politics is obviously a factor causing the rupiah to weaken
\nbecause it has to do with a number of government policies,
\nincluding those in the economic and monetary areas. In the legal
\narea, which should actually serve as the basis for security and
\npolitics, for example, President Abdurrahman \"Gus Dur\" Wahid
\nallowed the flag of the separatist Free Papua Organization (OPM)
\nand secessionist Free Aceh Movement (GAM) to be hoisted.<\/p>\n
This decision made the security forces confused when having to
\ndeal with growing demands for independence in these regions. On
\nthe one hand, the security forces are accused of not being
\nresponsive and quick enough, while on the other, they are accused
\nof violating human rights when they deal with insurrection in
\naccordance with their institutional procedures.<\/p>\n
The absence of legal certainty in the present transitional era
\nhas put people in an awkward position. So, now that GAM has been
\nofficially called separatist and has to be dealt with in
\naccordance with the standing procedure, in other regions
\nsecessionist aspirations will be dampened.<\/p>\n
The three factors referred to above greatly affect economic
\nand monetary stability and are specially linked to the
\nfluctuation of the rupiah. In this case, government regulation
\nNo. 1\/1982, which has benefited speculators, is also an important
\nfactor.<\/p>\n
Our rupiah has also weakened because the community has lost
\nits confidence in the government as new crucial problems have
\ncontinued to crop up. If this is the case, how can we expect the
\noutside world to have confidence in our country despite the fact
\nthat Gus Dur has traveled round the world, purportedly promoting
\nthe country?<\/p>\n
H. ASJARI<\/p>\n
Depok, West Java<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/why-is-the-rupiah-weakening-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }