“Rupiah weaken, and other countries also experience the same condition with their currencies, pressing by the strong dollar exchange rate, if we do not prevent the import optimally, this will make Rupiah to be more weaken,” stated Anindya (05/29).
Heaptalk, Jakarta — The Chairman of Advisory Council of KADIN Indonesia, Anindya Bakrie, stated that Indonesia should rapidly look for a way out to cope with the Rupiah exchange rate which increasingly weaken against Dollar, one of which is elevating the incentive for local companies and the use of local products.
Delivering his opening remarks in the 2024 ICEF, Anindya conveyed that Dollar is projected to remain strong, even more powerful. “The Federal Reserve (The Fed) is forecasted to not decrease its interest rate. For this reason, we have to possess a new projection that Rupiah may be will be in the hard position,” stated Anindya.
He added that the pace of the US economy remains fast, and based on the projection, to respond this great result the US government is predicted to maintain its interest rate.
Meanwhile, geopolitics climate in the Middle East tends to heat up. This condition also worsens the Rupiah exchange rate, pressing it until reach Rp16,169 per USD1. The poor geopolitics condition definitely impact the trade sectors.
“Rupiah weaken, and other countries also experience the same condition with their currencies, pressing by the strong dollar exchange rate, if we do not prevent the import optimally, this will make Rupiah to be more weaken,” stated Anindya (05/29).
For this reason, he believes that the best way to prevent this situation is by promoting the incentive for local producers and boost the use of local products which have Domestic Component Level (TKDN) certification.
“Let’s sound this initiative very loud to make the incentive for industries enhance, and later escalate the rate of TKDN, and also to regulate import procedure to be more selective and prioritize the use of local content (TKDN),” stated Anindya.
