Further Steps to Protect Rupiah
The government is preparing additional measures to reduce the current account deficit. After announcing an additional import tax on 1,147 imported consumer goods, the government is discussing a number of national strategic projects that can be delayed.
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A glass ball magnifies the illustration of Benjamin Franklin on a US$100 bank note on Tuesday (4/9/2018) in Jakarta. Despite hovering at around Rp 14,800 per US dollar, the rupiah strengthened slightly to Rp 14,891 per US dollar on Thursday (6/9/2018), a 36-point (0.24 percent) increase from Rp 14,927 per US dollar the previous day.
JAKARTA, KOMPAS – The government is preparing additional measures to reduce the current account deficit. After announcing an additional import tax on 1,147 imported consumer goods, the government is discussing a number of national strategic projects that can be delayed.
By reducing the current account deficit, it is expected that the pressure on the rupiah will also ease. Indonesia has run a current account deficit since the fourth quarter of 2014. In the second quarter of 2018, the current account deficit reached US$8.02 billion, or 3.04 percent of gross domestic product (GDP). A current account deficit occurs when a country earns less US dollars than it needs.