ID :
67919
Fri, 06/26/2009 - 17:24
Auther :
Shortlink :
https://www.oananews.org//node/67919
The shortlink copeid
RI NEEDS TO ANTICIPATE CREATION OF BRIC TRADE BLOC
Jakarta, June 26 (ANTARA) - Indonesia needs to take anticipatory steps in the face of the possibility of the realization of Brazil, Russia, India and China (BRIC) trade bloc agreement using local currencies in their transactions, an economic observer said.
Regional economic observer of the Research Center of the Indonesian Institutes of Sciences (LIPI), Wijaya Adi, said here on Friday that the economic bloc was established to protect their interest.
"We have to learn from our dependence on the US dollar currency which causes the rupiah value continues to fluctuate because trade is under the control of the United States as a superpower," he said.
Wijaya said that Indonesia had established trade contacts and carried out trade transactions with Russia where in 2008 Indonesia's exports were valued at Rp14 trillion.
In the meantime, India and China needed crude palm oil (CPO), coal, rubber and paper from Indonesia. These are strategic markets.
The LIPI researcher said that the BRIC economic bloc, if realized, was actually a breakthrough that would minimize the impact of globalization.
"Indonesia must be ready so that the presence of the economic bloc would not harm its exports, at least it has to maintain its partnership with United States," he said.
Wijaya said he was unable to guarantee that trade transactions with local currencies, if the bloc was realized, would affect the stability of the rupiah currency.
In the meantime, economic analyst Pande Radja Silalahi said the rupiah value would depend on Indonesia's trade transactions with the BRIC members.
If the economy of a BRIC member is not stable it would affect Indonesia's rupiah currency, he said.
Trade transactions with a BRIC member would also used a foreign currency which would be decided later, just like in case of US dollar currency.
But whether or not the BRIC bloc would use a local currency or US one would respectively has advantage and disadvantage.
Therefore, Indonesia has to prepare itself so that it would be able to face the two possibilities.***
Regional economic observer of the Research Center of the Indonesian Institutes of Sciences (LIPI), Wijaya Adi, said here on Friday that the economic bloc was established to protect their interest.
"We have to learn from our dependence on the US dollar currency which causes the rupiah value continues to fluctuate because trade is under the control of the United States as a superpower," he said.
Wijaya said that Indonesia had established trade contacts and carried out trade transactions with Russia where in 2008 Indonesia's exports were valued at Rp14 trillion.
In the meantime, India and China needed crude palm oil (CPO), coal, rubber and paper from Indonesia. These are strategic markets.
The LIPI researcher said that the BRIC economic bloc, if realized, was actually a breakthrough that would minimize the impact of globalization.
"Indonesia must be ready so that the presence of the economic bloc would not harm its exports, at least it has to maintain its partnership with United States," he said.
Wijaya said he was unable to guarantee that trade transactions with local currencies, if the bloc was realized, would affect the stability of the rupiah currency.
In the meantime, economic analyst Pande Radja Silalahi said the rupiah value would depend on Indonesia's trade transactions with the BRIC members.
If the economy of a BRIC member is not stable it would affect Indonesia's rupiah currency, he said.
Trade transactions with a BRIC member would also used a foreign currency which would be decided later, just like in case of US dollar currency.
But whether or not the BRIC bloc would use a local currency or US one would respectively has advantage and disadvantage.
Therefore, Indonesia has to prepare itself so that it would be able to face the two possibilities.***
