Mulyani concerned over Rupiah appreciation

Friday, April 30, 2010 · Posted in

Finance Minister Sri Mulyani Indrawati expresses concern that the strengthening value of Rupiah against US dollar over the past four months can impact negatively on the country’s competitiveness and hurt its exports.

Mulyani said in Jakarta on Wednesday although the country’s exports still showed “positive level” when compared to its imports, there was a possibility that “negative signs” would emerge, following Rupiah’s appreciation.

“These days all developing countries will face fairly huge international capital flows, and this will affect their currencies’ exchange rates,” Mulyani said in her address before hundreds of central and regional government officials in a meeting discussing the national development planning for 2011.

“Indonesia is among countries experiencing very strong appreciation with its currency. India’s currency has only increased by 5 percent, and other countries’ under 10 percent.

“Rupiah’s appreciation, however, has reached 15 percent over the first four months of the year. This will really determine our economic competitiveness,” she added.

Mulyani said the government predicted smaller export growth in 2011 compared to the growth this year.

thejakartapost

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