CPO Levy Export for Rupiah Strengthen. The pressure of the exchange rate of rupiah against the United States dollar (us) make the Government and Bank Indonesia (BI) is require to prepare a fundamental solution than raising interest rates. As for one of the solutions to strengthen the rupiah can be done is by removing the levy export for Crude Palm Oil (CPO) for raw materials and refine, especially in palm oil industry.
Customs barriers went into India so issues that make Indonesia CPO export performance is not optimal. If the levy of export relaxation then palm oil exports will be encourage. So are expect to suppress the trade deficit and increasingly strengthen rupiah exchange rate. However, when later exports have start to export CPO levy stable, can be warn again.
Meanwhile, short-term strategies BI can intervene in the foreign exchange market by selling dollars. BI and the Government will continue its intervention in the market of government securities (SBN) with buy sell action if an SBN massive by investors. State-owned enterprises (SOEs) also can buy back their shares in case of massive selling by investors action.
However, if the pressure on the rupiah continue in the next few weeks, likely will raise BI 7 DRR rate by 25-50bps this month.