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Market
Monday, 10/30/2023 19:55 WIB
Photo: Minister of Finance Sri Mulyani during a coordination meeting with Regional Leadership Officials. (Instagram @smindrawati)
Jakarta, CNBC Indonesia – Today, Monday (30/10/2023) Minister of Finance Sri Mulyani Indrawati attended a coordination meeting with Acting Regional Heads organized by the Ministry of Home Affairs (Kemendagri).
During the meeting, Sri Mulyani explained why the United States (US) dollar rose quite high, causing the rupiah to weaken.
“Yesterday many people asked me, “Why has the US Dollar exchange rate risen so high?” said Sri Mulyani as quoted from her Instagram account.
“This is also what I explained to the Regional Leadership Officials in the Coordination Meeting held by Mr. Tito Karnavian together with the Ministry of Home Affairs staff this afternoon,” he explained.
Meanwhile the US dollar index (DXY) at 15.22 WIB strengthened by 0.10% to 106.67. This figure is higher than the close of trading yesterday (27/10/2023) which was at 106.56.
Sri Mulyani explained that this situation was caused by several factors, especially from the United States (US). The very wide budget deficit experienced by the US government caused bond issuance to increase. Apart from that, inflation is still high, which means the benchmark interest rate has the potential to rise at the end of this year.
“What is the impact? This phenomenon has caused widespread withdrawal of US Dollars from around the world to be reinvested in America. Thus, the US Dollar index has strengthened, while other currencies have weakened,” he said.
Photo: Minister of Finance Sri Mulyani during a coordination meeting with Regional Leadership Officials. (Instagram @smindrawati)
Minister of Finance Sri Mulyani during a coordination meeting with Regional Leadership Officials. (Instagram @smindrawati)
Pressure also comes from other regions, such as Europe, which has not yet fully recovered. China also did not meet expectations, making many major trading partner countries worried.
“Not only America, currently pressure from other largest economic countries such as China and the European Union is also having an impact on almost all countries in the world, including Indonesia,” he added.
What about the Indonesian economy?
Sri Mulyani said that Indonesia’s economic growth in the second quarter of 2023 reached 5.17%. This positive trend is expected to continue in the third and fourth quarters with the economy. Even though it is still below the APBN target of 5%.
Inflation as of September 2023 on an annual basis (year on year (yoy) reached 2.28%, below the APBN assumption of 3.6%.
Photo: Minister of Finance Sri Mulyani during a coordination meeting with Regional Leadership Officials. (Instagram @smindrawati)
Minister of Finance Sri Mulyani during a coordination meeting with Regional Leadership Officials. (Instagram @smindrawati)
The rupiah exchange rate is currently under great pressure, almost reaching the level of IDR 16,000 per US dollar. However, seen from the beginning of the year, the rupiah only depreciated 1.35%. On average from the beginning of the year it was 15,171 per US dollar, slightly above the assumption of Rp. 14,800 per US dollar.
“Our situation is still relatively good compared to other countries. This is because the APBN works extraordinarily hard as a shock absorber, so that we can reduce pressure coming from outside and not hit society directly,” he explained.
The 10-year SBN interest rate in the APBN assumptions is set at 7.9%. The realization as of October 24 was 7.10% (eop) and 6.59% (eop).
The price of Indonesian crude oil (Indonesia Crude Price) was recorded at US$90.1 per barrel (eop) and US$77.69 per barrel. Oil production as of September was 608.6 rbph and gas 954.5 rbsmph.
Photo: Minister of Finance Sri Mulyani during a coordination meeting with Regional Leadership Officials. (Instagram @smindrawati)
Minister of Finance Sri Mulyani during a coordination meeting with Regional Leadership Officials. (Instagram @smindrawati)
The realization of the state revenue and expenditure budget (APBN) as of September 2023 continues its positive trend. The APBN surplus was IDR 67.7 trillion or 0.32% of gross domestic product (GDP).
Sri Mulyani hopes to help the current economic situation by optimizing the existing budget. “I hope that the Regional Government will also optimize the APBD to support this expansion step. We at the Ministry of Finance will always be ready to provide support,” he concluded.
Watch the video below:
Falling Again, the Rupiah is Getting Closer to IDR 16,000 Per US Dollar
(me/me)
2023-10-30 12:55:11
#Sri #Mulyani #asked #dollar #high
