REPUBLIKA.CO.ID, JAKARTA -- Bank Indonesia (BI) ensured to be in the market to maintain rupiah stability. Current economic conditions are still better than the financial crisis in 1998 and 2008.
BI Governor, Agus Martowardoyo said, the weakening of rupiah is influenced by external conditions, namely the improvement in the US economy. It is also influenced by the US central bank's plan, the Fed, who plans to raise interest rates.
Such problems should be responded with good coordination between monetary authorities and governments. These parties have to convince investors that the policy issued is consistent and reliable.
He said that the Bank Indonesia will always be in the market to maintain rupiah stability, in order to avoid high volatility. It also maintains adequate reserves.
Agus continued, the current conditions are much better than the monetary crisis in 1998 and 2008. It can be seen from the volatility of the exchange rate and the rate of inflation that is more controlled.
“In the 1997-1998 financial crisis, the inflation reached 60 percent. In 2008-2009, the inflation rate is also high,” he added.
Indonesian inflation rate today leads to a level of four percent. He warned the economic situation and conditions must be maintained to pessimism, so that negative sentiment is not sustainable.
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