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Erratic Policy Threatens the Safety Cushion

Monday, 30 May 2022

When export earnings have been playing a huge part in saving the economy, the government should be careful. Banning exports will only add to the risk that threatens the safety cushion of the Indonesian economy.

Erratic Policy Threatens the Safety Cushion. tempo : 167581617951

INDONESIA’S economy is really fortunate to escape from global market turmoil. Consistently high commodity prices have jacked up the country’s trade balance surplus significantly. In April, Indonesia enjoyed its highest ever monthly trade surplus of US$7.56 billion. This surplus is the safety cushion. It makes the rupiah’s value quite stable at around Rp14,600.

The United States Federal Reserve’s rate hike has pushed

...

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