Governor of Bank Indonesia, Agus Martowardojo that he was concerned with the Fed plans to raise interest rates. This plan will affect the flight of foreign investors in Indonesia making the rupiah depressed.
The weakening of the rupiah feared to make foreign debt payments become more expensive, beyond prediction.
“The total debt of the government of Indonesia on high foreign debt reached 36 percent. There repair the American economy, investors are returning to the United States to pressure Indonesia,” Agus said at the Ritz Carlton Mega Kuningan, Jakarta, Wednesday (1/10).
Not only that, the removal of fiscal stimulus America will be impacted due to foreign currency transaction Indonesia is still shallow. Average daily foreign exchange transaction Indonesia only Rp 5 billion per day. This figure is far from Malaysia and Thailand.
“Malaysia and Thailand of their total daily transactions of Rp 12 billion to Rp 27 billion and even Turkey. This needs to be improved in the foreign exchange market. So when there is a high need for foreign currency exchange rate we are not pressured too deep,” he said.
In addition, foreign exchange transactions in Indonesia is still done by cash. “While we are a small swap transaction swap while developed countries should be more,” he concluded.