Indonesia's economy has not entered an era of crisis such as 1998 or 2008

Indonesia's economy has not entered an era of crisis such as 1998 or 2008


 Finance Minister Chatib Basri had an audience with the 540 foreign investors related to the four economic policy package to respond to the decline in the rupiah and the Jakarta Composite Index (JCI).

He explained that the Indonesian economy has not entered an era of crisis such as 1998 or 2008 first. "In the unusual economic conditions, the Indonesian economic crisis yet but we should be aware of the financial market turmoil and exchange rates," Chatib said when met at his office, Jakarta, Tuesday (08/27/2013).

Currently, the index in the first trading session fell 146.35 points to 3977.74. Meanwhile, the rupiah conditions based BI middle rate also fell back at Rp 10,883 per U.S. dollar, compared to yesterday's trading at Rp 10,841 per U.S. dollar.

Chatib said the weakening of the rupiah and the Jakarta Composite Index is still the termination of the impact of the fiscal stimulus from the U.S. central bank to the market. Moreover, the stock market broke ganjing India and Thailand are also significant.

Of domestic conditions, Chatib said that the current account deficit Indonesia also declined to 4.4 percent of Gross Domestic Product (GDP). Hopefully, a good policy package released from the Financial Services Authority (FSA), Bank Indonesia (BI), and the Ministry of Finance will effectively respond to the weakening rupiah and JCI.

"We will focus on stabilization reduce the current account deficit. Secondly, we will maintain the momentum of economic growth with fiscal incentives," he added.

Former Indonesian President BJ Habibie Third Republic joined to comment on a weak exchange rate that occurred lately. He said the rupiah is different from the era of 1998 had.

"I can not take out a policy as 15 years ago. Then in 1998, I faced (weakening rupiah) is the all-out," Habibie said when met at the BPPT, Jakarta, Monday (08/26/2013).

He added that all parties should be responsible for the weakening of the exchange rate, both the government and the Parliament, as well as related institutions, especially the Bank of Indonesia (BI). He expects the rupiah currency which can be constant and predictable weakening or gains.

"We must be careful, we have to make our currency was high quality. Affairs High quality not only its value, but also have a constant that can be calculated to be predictable," he said.

If conditions become unpredictable rupiah, said Habibie, then it will lead to inflation and would interfere with the domestic economy. Habibie also do not want when the rupiah currency is manipulated so that the condition fluctuated.

"If it can not be taken into account, it's like playing gambling (gambling) alone.'s To be avoided," he added.

Habibie wanted anyone not take advantage of the weakening of the rupiah. Even if there is leverage to take advantage, then the profits should be used to enhance the welfare of the people.

Thus, rising employment, rising incomes, and public health guaranteed.

Based on exchange rate of Bank Indonesia (BI), the rupiah traded at Rp 10,841 per U.S. dollar, slightly higher than last weekend trading at Rp 10,848 per U.S. dollar.