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The Governor of BI, Perry Warjiyo, said that the tension in the Middle East has nothing to do with Indonesia's economy. (Image via Jawa Pos)
Iran and U.S tension will not affect Indonesia's economy: BI
The Governor of Bank Indonesia (BI), Perry Warjiyo, claimed that the ongoing conflict in the Middle East between the United States (U.S) and Iran past days will not affect Indonesia’s economy significantly.Speaking in Jakarta on Friday, Perry said that the escalation of tension between the U.S and Iran is a part of global geopolitics. Indonesia does not see the effect of it.
Perry added that the conflict will not affect the rate of Indonesian Rupiah (IDR) against the U.S Dollar (USD). It was evident when IDR strengthened, instead of weakening, against the USD. Moreover, the risk premium in the form of a credit default swap (CDS) kept weakening.
Furthermore, Perry claimed that BI will keep up with global development. The development of the “Phase One” negotiation between the U.S and China made the global economy thrive in a greater direction. The signing date has been determined on 15 January.
The trade agreement between the two countries supports Indonesia to crank its export in order to support the domestic economy and provide positive risk perception for foreign investment.
The global economy will see an improvement to around 3 – 3.1 percent, more than the 2019’s estimation at 2.9 percent.
Perry did not deny, however, about the effects of global geopolitics occurrences such as Iran against the U.S, China against the U.S, and Brexit toward Indonesia’s economy. However, he emphasized that it was not that “big”.
Source: https://bit.ly/2NfsAwF
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