Mon, 03 Aug 2015

The Indonesian government should be wary of the current sluggish economic condition that could trigger massive layoffs by companies, according to a legislator.

Several companies have suffered from serious financial problems due to the ongoing sluggish economic condition, Deputy Chairman of the House of Representatives (DPR) Fadli Zon, stated here, Monday.

The weakening of the rupiah, which is now stands at Rp13.5 thousand per US dollar, has affected the nations economy, he noted.

He lambasted the finance minister for saying that the rupiahs depreciation is not the governments responsibility.

Such a statement is wrong and even dangerous, according to the lawmaker.

"It shows that there is no coordination between the government and Bank Indonesia," he remarked.

Businessmen might be losing trust in the government that might be considered incapable of controlling the situation, he pointed out.

Currently, the economic condition is in a precarious state and in the red zone.

The government must not shy away from its responsibility of restoring the situation.

"If not, the deficit will worsen, and the government needs to take concrete actions," he affirmed.

The government must take concrete actions to respond to the rupiahs depreciation, he noted.

Exports need to be intensified, and the rupiah must be used in every business transaction in the country, he added.(*)