Purbaya: Indonesia is Not Heading Towards a 1998-style Crisis
Finance Minister Purbaya Yudhi Sadewa has emphasised that Indonesia is not heading towards an economic, financial, or monetary crisis similar to the 1997-1998 period. The Minister stated that the current national fiscal condition and economic fundamentals remain in a good and well-maintained category.
This statement was made in response to public concern following the Rupiah exchange rate breaching the Rp18,000 per US dollar mark during trading on Thursday (4/6). According to the Minister, this weakening is primarily caused by temporary negative sentiments affecting the foreign exchange market.
“We are not heading towards a situation like 1997-98 again. Our fiscal position is good, the economy is strong, there are just negative sentiments here and there that are slightly disrupting the exchange rate,” said Purbaya during a working visit to the Tanjung Priok Customs and Excise Office, Jakarta, on Saturday (6/6).
The Finance Minister emphasised that exchange rate fluctuations can be rectified through a more solid combination of policies between the Government, the Ministry of Finance, and Bank Indonesia (BI). He ensured that the synchronisation of fiscal and monetary policies will be strengthened to encourage the re-strengthening of the Rupiah.
Strategic steps being prepared include increasing the attractiveness of domestic financial instrument yields to trigger foreign capital inflows. Additionally, the government is committed to maintaining liquidity in the money market and the banking sector through the management of state cash placed within Bank Indonesia.
“The existence of synchronisation between relevant stakeholders is deemed capable of reducing production costs experienced by businesses that depend on imported raw materials. We will ensure this happens in the near future,” he added.
Concluding his remarks, Purbaya assured that the President’s leadership remains very strong in ensuring all development strategies proceed according to plan. He urged the public and business actors to remain calm amidst the current global market dynamics.