Rupiah weakens due to yuan devaluation, says Kalla

JAKARTA. Vice President Jusuf Kalla said on Wednesday that the weakening of the rupiah exchange rate to Rp 13,747 per US dollar on Wednesday morning was triggered by, among other things, the Chinese government’s decision to devalue its yuan.

“It is one of the impacts of the yuan devaluation. Indonesia has suffered from the impact of the devaluation. This has affected not only Indonesia but also other countries,” the Vice President said as quoted by Antara in Jakarta on Wednesday.

Kalla said the weakening of the rupiah was also triggered by some other factors, including domestic affairs and everything conducted by the government had a correlation with external factors as well.

The rupiah exchange rate traded among banks in Jakarta on Wednesday morning weakened by 140 points to Rp 13,747 per dollar from Rp 13,607.

Samuel Securitas economist Rangga Cipta said in Jakarta that the rupiah exchange rate had been suppressed to its weakest level in the last 17 years.

Domestic currencies had suffered a serious impact from the Chinese government’s policy to devalue its yuan.

“Indonesia’s position as one of China’s main trading partners and a commodity exporter will make the country’s overall economic prospects suffer from the Chinese government’s policy,” said Rangga.