DPR wants effective policies other than rising interest rate

DPR wants effective policies other than rising interest rate

Bank Indonesia Governor has raised

REPUBLIKA.CO.ID, JAKARTA — The House of Representatives (DPR) wants effective polices other than raising benchmark interest rate by Bank Indonesia to prop up rupiah. The national currency has weakened over the past months and the Central Bank has raised its benchmark interest rate to help maintain rupiah stability.

“We also hope an increase in the strength of economic fundamentals in micro scale,” Deputy Speaker of the House Taufik Kurniawan said here on Thursday.

Taufik said Bank Indonesia has taken step by raising its benchmark interest rate, adding the step gave a serious signal. Therefore, a number of programs to strengthen economic fundamentals such as by increasing social aid like Welfare Family cards, he said.

The social aid could improve the welfare of the people in facing possible economic slowdown, the PAN politician said.

Also read: US policy change puts pressure on rupiah: BI

Meanwhile, Gerindra lawmaker Heri Gunawan said substantial correction is needed of the country’s economic structure to boost economic growth “Substantial correction is necessary to improve structure between sectors in the development strategy in short term development,” Heri Gunawan.

He said correction should touch substantial aspect mainly to drive development next year. Only that way the economy would continue to grow , he said without giving details.

Earlier President Joko Widodo said the rupiah fluctuation against the U.S. dollar is a global phenomenon experienced by almost all countries. “This is a global phenomenon, all counties experience,” the president said.

Rupiah and the currencies of other countries have weakened as a result of the Fed raising its fund rate .

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