Does Social Unrest Will Come Amid Unstopable Rupiah Exchange Rate Slowdown?
Everyday we must observe and monitor the trend of Rupiah exchange rate because everyday we can see the US dollars will always punch Rupiah exchange rate and until now we do not see anything smart solution or policy from the government to address serious and significant threat.
Theoritically and obviously, the slowdown and drop value of Rupiah exchange rate may create social unrest which had tasted for us seems like 1998’s social riots and those situation had brought the resign of President Soeharto.
Many of strategies which have been prepared by the government, but neither its will be implemented nor firmly executed never clear yet and those conditions makes business and an investment climate in Indonesia under questionable.
I think the trigger of Rupiah exchange rate slamp by the US dollars because the effects of Trump’s government which has been doing trade war against China and as the unilateral policy implementation to protect “American first” and to punish whatever the government which had been made or have been maintaining close political and economical relationship especially with China. And Indonesia under the US’s perspective and observation tend to do not “obey” again to Washington. And China can not do it anything to help Indonesia in this moment.
Obviously, the government must make “bravely and radically movement” to strengthening Rupiah through first do not sell State Debt Letter and Obligation because it is the future debt trap. Second, an import taxes must raise especially for the import products which coming from countries which have surplus from trade with Indonesia. Third, the government must stop whatever task forces at ministries and state agencies especially unefficient and unclear its outcome. Fourth, the government must cut government high rank officials both civilian, military and police renumeration and unclear and unbudget their operations funds. Six, the government must be brave to implement “resiprocal action and policies” against whatever countries which have been implementating its to Indonesia. Hopefully.
*) SV Farrah is global and national strategic issues observer. Living in Ambon, Mollucas Provinces