ID :
59695
Fri, 05/08/2009 - 20:04
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https://www.oananews.org//node/59695
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RUPIAH APPRECIATION AFFECTS EXPORTERS: KADIN
Jakarta, May 8 (ANTARA) - The Indonesian Chamber of Commerce and Industry (Kadin) said the appreciation of the rupiah against the dollar currency adversely affected industries which carried out exports in the country.
"We have felt its negative impact but it is still small," Chairman of Kadin's Permanent Committee Thomas Darmawan said here on Friday.
Industries carrying out exports included textile industries and those producing other commodities such as cocoa, coffee and palm oil.
The rupiah exchange rate at the inter-bank spot money market on Friday evening stood at Rp10,370/10,380 per US dollar. The Friday figure weakened from Rp10,350/10,365 per US dollar at the closing a day earlier.
Darmawan said that the impact of the rupiah appreciation on exports was still small but if the rupiah continued to gain strength it would have negative impact on exporters because the margin they obtained would be reduced.
"With the appreciation of the rupiah, exporters would face difficulties to compete in the world market. As a result, the export values would drop in line with the strengthening of the rupiah," he said.
He said however it could not yet be ascertained that the rupiah would continue to appreciate because its exchange value still fluctuated.
"The rupiah appreciation in the last several days could have been caused by the smooth implementation of the recent legislative election," Kadin spokesman Haid Widianto said meanwhile.
Previously, economic observer Drajat Wibowo said that the appreciation of the rupiah would negatively affect the country's exports.
"The ideal exchange rate of the rupiah against the US dollar is Rp11,000 per US dollar. So the fluctuation of the rupiah should be watched so that it would not affect exports," he said.
According to Wibowo, if the rupiah exchange rate continued to strengthen against the US dollar currency, it would exports to face difficulties in competing in the global market.
As a result, Indonesia's export values would continue to drop in line with the appreciation of the rupiah.
"Exports would be affected if rupiah strengthened," he added.***
"We have felt its negative impact but it is still small," Chairman of Kadin's Permanent Committee Thomas Darmawan said here on Friday.
Industries carrying out exports included textile industries and those producing other commodities such as cocoa, coffee and palm oil.
The rupiah exchange rate at the inter-bank spot money market on Friday evening stood at Rp10,370/10,380 per US dollar. The Friday figure weakened from Rp10,350/10,365 per US dollar at the closing a day earlier.
Darmawan said that the impact of the rupiah appreciation on exports was still small but if the rupiah continued to gain strength it would have negative impact on exporters because the margin they obtained would be reduced.
"With the appreciation of the rupiah, exporters would face difficulties to compete in the world market. As a result, the export values would drop in line with the strengthening of the rupiah," he said.
He said however it could not yet be ascertained that the rupiah would continue to appreciate because its exchange value still fluctuated.
"The rupiah appreciation in the last several days could have been caused by the smooth implementation of the recent legislative election," Kadin spokesman Haid Widianto said meanwhile.
Previously, economic observer Drajat Wibowo said that the appreciation of the rupiah would negatively affect the country's exports.
"The ideal exchange rate of the rupiah against the US dollar is Rp11,000 per US dollar. So the fluctuation of the rupiah should be watched so that it would not affect exports," he said.
According to Wibowo, if the rupiah exchange rate continued to strengthen against the US dollar currency, it would exports to face difficulties in competing in the global market.
As a result, Indonesia's export values would continue to drop in line with the appreciation of the rupiah.
"Exports would be affected if rupiah strengthened," he added.***
