Sukses

Indonesia Grapple with Shaky Economic Climate Akin to 1998 Crisis

Liputan6.com, Jakarta The world's economy is currently at unpromising stage with many countries reportedly affected by such volatility. It is a dangerous turn of events for these nations as alleviation measures are underway.

Addressing economic issues for affected countries is of paramount importance and evidence clearly shows that economic instability likely to spur equally catastrophic social upheaval in the nations such as what has recently occured in Malaysia.

China makes immediate respond to such uncertain economic climate with its People' Bank of China recent move of devaluing its currency for 3 consecutive days starting from the 11th through to 13th of August 2015 by 2%.
 
China's hasty move is not without prior consideration to its domestic economy. It has been learned that the devaluation strategy was based on the premise that it could spur its exported commodities in the global market.
 
With devalued currency, products made in China will become inexpensive and capable in competing in the larger international realm.

China has been pushing its exports as to boost its economic growth especially after the bamboo country spending years of economic instability.

"As we all know, China resorts to its last option in anticipation of global economic slow down," Australia & New Zealand  Banking Group Ltd. analyst, Khoon Goh said.
 
"Devaluation is a strategy used to improve and increase the possibility of achieving more market base in the future especially for the new currency regime," he added.

Economist of PT Bank Negara Indonesia Tbk (BNI), Ryan Kiryanto explained that the devaluation has a profound effect to other Asian nations around it.

Affected countries include: South Korea, Australia, Singapore and Indonesia.

Following China's devaluation is Indonesia's weakened currency with its level positioned at 14.000 per US$. This is the lowest since 1998 where the archipelago nation was in fatal political and economic upheaval marking the end of Soeharto era.

"Currency issue has always been a problem for us because there are just too much of a foreign donor in our economy," he explained.

Foreign Value analyst, Farial Anwar said that the unstable Indonesian rupiah is not caused primarily by external factors. There are many internal or domestic factors that play a crucial role in destabilizing the economy.

"Even with the cabinet reshuffled thereby cause for a massive replacement on several Ministers, the government is still challenged by the lack of coordinacy among Ministries and contesting opinions among them," Farial murmured.
 
But Indonesia is now progressing in its infrastructure development. So, surely there is still a lot of hope that can be counted upon.(Akp/Ein)

* Fakta atau Hoaks? Untuk mengetahui kebenaran informasi yang beredar, silakan WhatsApp ke nomor Cek Fakta Liputan6.com 0811 9787 670 hanya dengan ketik kata kunci yang diinginkan.

Video Terkini