Sunday, 09 September 2018 09:00

Export-Based Business Sector Benefited by Stronger US Dollar

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Economist and capital market observer Lucky Bayu Purnomo in a discussion held by one of the private radio stations in Jakarta, Saturday, September 8, 2018 Economist and capital market observer Lucky Bayu Purnomo in a discussion held by one of the private radio stations in Jakarta, Saturday, September 8, 2018 VOI-REZHA

Indonesia is one of the countries affected by the strengthening United States Dollar (US). At present rupiah exchange rate against is still above Rp. 14,000 per US Dollar. The strengthening of the US Dollar exchange rate has affected business sector that relies on imports. However, on the other hand the strengthening of the US Dollar exchange rate has a positive impact on export-oriented business sectors. These impacts include increasing their profits which have implications to increase the country's foreign exchange reserves. This was stated by economist and capital market observer Lucky Bayu Purnomo in a discussion held by one of the private radio stations in Jakarta, Saturday, September 8, 2018.

I think that is a logical and market opinion that when the US Dollar strengthens it becomes an opportunity for several sectors and there are also sectors that are under pressure. And mining is the most profitable sector,” Lucky Purnomo said.

Lucky Purnomo further explained that in addition to mining, other sectors that benefited most from the strengthening of the US dollar exchange rate were plantation sectors that were equally export-oriented and had trading partners based on US dollars. He also said the strengthening of the US dollar exchange rate should be used as a momentum to encourage exports and national logistics so that they will not compete with other countries which also affected by the strengthening of the US dollar exchange rate. (VOI / Rezha/DP)

Read 37 times Last modified on Thursday, 13 September 2018 08:54