Indonesia set to unveil stimulus measures to bolster
rupiah
JAKARTA (REUTERS) -
Indonesia will announce later on Tuesday (Sept 29) the second installment of a
stimulus package aimed at supporting the rupiah and reviving growth in
Southeast Asia's largest economy, chief economics minister Darmin Nasution
said.
President Joko Widodo,
along with his economics team, will unveil the latest measures at the
presidential palace in the coming hours, the minister said.
As part of the package,
the central bank is expected to take steps to increase the onshore supply of
dollars, including a relaxation of requirements on forward dollar selling and a
tax incentive for exporters to keep their dollars in local banks.
The government is not expected
to announce revisions to the so-called negative investment list that details
sectors restricted to foreign funds.
Investor sentiment
towards the world's fourth most populous nation has soured, with Widodo
struggling to implement much needed reforms, partly due to rifts in his own
party and squabbles among government agencies.
The first installment of
the stimulus package, announced three weeks ago, has had little affect on
markets, and traders doubted whether the coming announcement would evince any
significant reaction either.
"I don't have high
hopes," said a Jakarta-based equities trader. "Some of the package
we've heard will include incentives to repatriate export earnings, probably a
tax holiday too. These will only show results in the mid-term to
long-term."
Indonesia's stock index
has fallen by 21 per cent so far this year, while the rupiah has weakened by
nearly 16 per cent - the worst performing currency in emerging Asia after
Malaysia's ringgit.
The first package of
measures included streamlining dozens of overlapping trade and industry
regulations to make it easier for investors, simplifying the permission process
for "strategic projects", and easing rules for foreigners opening
bank accounts in foreign currency.
OPINION
In a short time the president Jokowi did a lot of work to do in Indonesia . not only for economyc progress in Indonesia, improvements in Indonesia too
much and should be done at the same time .
With the declining value of the rupiah against the dollar so dramatic to make the government do a lot of stimulus to the economy remains stable he decline in investment to make the government got a lot of homework into their work list .
SOLUTIONS
The amount of the government's task will not be successful if not accompanied aid society to help realize these changes , in other words, the community also plays an important role in the development of this diIndonesia .
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