Minister Airlangga Hartarto provided a measured response to Minister Erick Thohir’s recent directive urging several state-owned enterprises (BUMN) to enhance their procurement of US dollars in the upcoming period. In his rebuttal, Hartarto expressed reservations regarding the prudence of such a decision, particularly in the context of the ongoing strengthening of the US dollar index. He underscored the potential adverse effects on the exchange rate of the Indonesian rupiah if purchases were made at elevated dollar prices. Speaking eloquently during a press briefing held at the esteemed Office of the Coordinating Ministry for Economic Affairs in Jakarta on Thursday, April 18, 2024, Hartarto highlighted the importance of strategic economic decisions in preserving the stability of the national currency.
Version 2: In response to the prevailing trend of rupiah depreciation, Minister Airlangga Hartarto underscored the urgency for a collective effort among diverse stakeholders, including state-owned enterprises (BUMN), to alleviate the demand for US dollars. Hartarto advocated for a strategic realignment of priorities, urging exporters to reinvest their foreign exchange earnings within the national financial ecosystem, in adherence to established export earnings protocols. This strategic maneuver aims to mitigate the adverse effects of US dollar depreciation. Addressing the media during a press briefing convened at the Ministry of Coordinating Economic Affairs in Jakarta on Thursday, April 18, 2024, Hartarto emphasized the government’s commitment to deploying available financial mechanisms, such as export earnings, in the pursuit of economic stability and resilience.
Version 3: Minister Airlangga Hartarto has issued a directive urging businesses to exercise prudence in their importation of consumable goods, particularly in consideration of the prevailing exchange rate of the Indonesian rupiah. Emphasizing the strategic importance of this measure, Hartarto stressed the need to mitigate the demand for US dollars by curtailing imports of non-essential items. Deputy Minister of Finance Suahasil Nazara echoed Hartarto’s sentiments, calling upon importers to exercise restraint in their procurement of consumable goods to alleviate pressure on US dollar demand. Simultaneously, the government has initiated measures to bolster its reserves of US dollars, including the implementation of mandatory deposits of export earnings. These efforts are aimed at stabilizing the rupiah and fortifying the country’s economic resilience in the face of prevailing market dynamics.
