::Products Competitiveness Down, the currency appreciation on Yuan Not at Risk>>

Go Finance Reporting in JAKARTA - The rupiah appreciation of the yuan rate is still at risk, even though China's currency weakness is blamed to be one cause of decline in the competitiveness of Indonesia against Chinese goods.

Head of fiscal policy (BKF) The Ministry of Finance Bambang Brodjonegoro explain the continued appreciation of the rupiah against the yuan does make the Indonesian market was flooded with goods from the Bamboo Curtain countries.

"With the rapid flow of imports into Indonesia, making Indonesia's manufacturing sector should improve its competitiveness," said Bambang via short message to the Legal, in Jakarta, this weekend.

Nevertheless, he considered the appreciation is still not reached an alarming stage. Because the other Asian currencies to appreciate against the yuan, thereby reducing the negative impact of the depreciation of Yuan.

Meanwhile, Deputy Minister for Economic Affairs Trade Industry Edy Putra Irawady admitted until this time there will be significant impact from the weakness of the Chinese currency. "There has been no change in monetary policy is usually an impact on import export new visible two months until three months later," he explained.

According to Edy, if a change in fiscal policy was one to two months in advance, and that regulatory changes quickly, such restriction or prohibition of imports and so its impact directly affected.

Earlier, Trade Minister Mari Elka Pangestu explained the issue very difficult exchange rate was taken at the G-20 forum. "In the meeting of finance ministers in Washington today, there is an imbalance that has not been completed and one of them the exchange rate issue," said Mari.

According to Mari, now, Indonesia shielded bilateral currency swap agreements (bilateral swap arrangement / BSA) with China. However, agreement has not been activated. On that basis, Mari confessed very much hope to the Ministry of Finance and Bank Indonesia (BI) to quickly complete the process of discussion of the BSA.

Let's add the government already had an exchange of the yuan and dollars. This is not the road. "It became a chore to BI and the Ministry of Finance so that later on direct trade between yuan and dollars. In the meantime, we still use the U.S. dollar, "he explained.

For your information, with a surplus on the Chinese side, should the yuan strengthened against the rupiah, but in fact in fact continues to weaken. On December 26, 2010, the yuan is still entrenched in Rp1.359, 34. As at 20 April 2011 has been weakening against the rupiah to a level of Rp1.328, 46 per yuan.
(GoFinance)