Mines Export Bureaucratic Simplify. As well as, the pressure on the exchange rate of the rupiah and Indonesia Stock Exchange (IDX) during recent weeks, became the signal for the Government take action. Furthermore, condition of the weakening of the currencies of some foreign countries and the strong dollar, should be brought to the attention of the Government. Moreover, pressure index of negative sentiment is affect when the depreciation of the currency of the country that have partner with United States business.
As a result, the strengthening US dollar affects fundamentally the rupiah that were in level to IDR14,400/USD, then market participants respond to a negative result of the pressure the rupiah to as low as the lowest IDR14,920/USD. In addition to, the Government is in charge of maintaining the purchasing power of the people, increase spending of State, overseeing lower than inflation interest rates, diligent published government bonds, as well as simplify mines export bureaucratic. In addition to the mines export bureaucratic, in out of foreign currency should also be restricted.
On the other hand, if the US dollar continues to strengthen and the rupiah remain weak. Finally, automatically returning the Indonesia Stock Exchange will experience pressure. Such a situation can continue next year as long as there is a policy the President of Trump. That does decrease taxes for American issuers and wider trade war. The Fed rate could go up with the target of 3.25%. Positive external signals is expect to come from the President’s policy Trump by delaying tariff import goods to all countries trading partners, The Fed rate is lower or delay the increase as economic growth trading partners.