REPUBLIKA.CO.ID, Jakarta -- President Joko Widodo (Jokowi) identified the recent strengthening of the Rupiah as the result of the policies and deregulation packages introduced by the government that had received a positive response from the business world.

"If we talk about the improving Rupiah condition, this means that the policies of the deregulation package that we have issued, along with the central bank's policy, has been taken positively by the business community in the FSA (Financial service Authority), and is reflected in the number of investments," said President Jokowi after inaugurating the operation of the Bonded Logistics Center (PLB) in the Cipta Krida Bahari industrial area, Cakung, North Jakarta, on Thursday.

The President said the various policies and positive response from the business community has allowed the flow of money, the flow of capital, or capital inflow.

These conditions automatically encouraged the strengthening of the Rupiah exchange towards the U.S. dollar.

The President did not deny that external factors had also contributed to encouraging the strengthening of the Rupiah.

"It came from both factors, if we don?t deregulate it won?t affect anything," noted the President.

He also asserted that the government was simply trying to control the exchange rate, which has triggered a response from the business community.

"If they see that we are doing this well, they will respond positively," Jokowi said.

At the beginning of the second week of March, the Rupiah exchange rate to the U.S. dollar strengthened further and reached the Rp12,000 level.

Many analysts have forecast that the Rupiah will continue to strengthen in the foreseeable future.

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