Indonesia to launch policy package to strengthen rupiah
Xinhua, August 27, 2015 Adjust font size:
The Indonesian government will unveil a policy package to be effective next week to lure foreign currencies to come in to help prop up the weakening rupiah, a senior minister said here Thursday.
Coordinating Minister of Economics Darmin Nasution said that the policy included tax holiday for investors and deregulation.
The rupiah hit a fresh 17-year low of 14,135 against the U.S. dollar on Thursday.
"The president has asked for and detailed big policies that must be at least some of them issued next week," Nasution said after a limited cabinet meeting led by Indonesian President Joko Widodo at the State Palace.
"This policy relates to the real sector, financial sector, deregulation and tax holiday. The purpose of this policy is to make the economic activity smoother and to lure foreign currencies to come in. We need it now (to settle) the problem of the rupiah," said Nasution.
The Indonesian central bank scaled down earlier this week its GDP growth forecast to 4.7 to 5.1 percent this year from the initial estimate of 5 to 5.5 percent.
The biggest economy in Southeast Asia grew at the lowest pace in six years to 4.71 and 4.67 percents for the first and second quarters this year, respectively. Endi