Ideal exchange rate?

Ideal exchange rate?

From Kompas

As a layman, I really cannot understand the statement/expectation of Coordinating Minister of Economy, Finance and Industry Ginandjar Kartasasmita that the exchange rate of US$1 against our rupiah stands at between 7,000 and 8,000. This is really a naive statement to be made by an economist. Whatever the reasons put forward by those having a lot of money, I, as one of the common people, really hope to see the rupiah exchange rate strengthen to the previous level of 2,500.

I suggest that the government should first save the majority of the people and should not make a decision only to save a handful of people. The government must imitate other Asian governments in protecting the people from the onslaught of foreign currencies.

Ginandjar's statement that a strengthened rupiah value will not make our exports competitive abroad should not have been made by an economist. The competitiveness of a product on the market will depend on the efficiency in the process of production. In fact, our products are competitive from the point of view of wages. This competitiveness may be enhanced if red tape can be minimized. Let's pray for our currency and hope that it will attain the best value in the interest of the whole nation.

ISHAK

Jakarta