Falling rupiah top concern for Jokowi

JAKARTA — The weakening of the rupiah is the top concern for Indonesia’s President Joko “Jokowi” Widodo, who has called on his ministers to discuss the matter several times, his Cabinet Secretary said yesterday.

“This is the main concern of the President. In yesterday’s meeting, the President asked ministers to keep a watch on the rupiah’s movement,” said Indonesia’s Cabinet Secretary Andi Wijdajanto.

The rupiah fell 0.3 per cent yesterday to 13,028 per United States dollar, breaching the psychological support level at 13,000 to its weakest level since the Asian financial crisis in 1997-98. Concerns over fund outflows due to an imminent interest rate hike by the US Federal Reserve continued to weigh on the rupiah, with sentiment also hurt by fears that Indonesia’s trade balance will worsen amid slowing economic growth in China.

China, Indonesia’s largest trading partner, aims for an economic expansion of about 7 per cent this year, down from last year’s goal of around 7.5 per cent, Premier Li Keqiang said in the National People’s Congress yesterday.

On Monday, Mr Widodo said he told the central bank he would like the rupiah at a “safe level” and hoped its depreciation against the US dollar would be temporary. Bank Indonesia Governor Agus Martowardojo said yesterday that the rupiah is in good condition and the central bank is not worried. AGENCIES