Thursday, 29 October 2020 | 14:55 WIB

ADB President: Indonesian Economy Strong, Rupiah Over-depreciated

ADB President Takehiko Nakau.

JAKARTA, NNC - President of the Asian Development Bank (ADB) Takehiko Nakau considered that in general Indonesian macroeconomic conditions are very strong, with a growth rate of more than five percent or above international growth of three percent.

"So, they regulate stable macroeconomic conditions," said Takehiko Nakao after meeting President Joko "Jokowi" Widodo on the sidelines of the IMF-World Bank Group Annual Meetings, at the Bali Nusa Dua Convention Center (BNDCC), Nusa Dua, Bali, Friday (10/12/2018), as stated by the official website of Cabinet Secretary, setkab.go.id.

Concerning depreciation of the rupiah exchange rate, the ADB President considered that the Indonesian currency exchange rate had been over-depreciated and did not show its fundamental value.

"That's because of speculative sentiments, because of the effects of the Federal Reserve policy (US Central Bank), and some problems for other reasons, I mean that arose in the macro economy," Takehiko explained.

Regarding his meeting with President Jokowi, the President of ADB admitted that he had offered loan assistance of USD1 billion for handling after the earthquake and tsunami in Palu and Donggala, Central Sulawesi, at the end of last September.

"So, five hundred million for budget support, and five hundred million of project support for water, sanitation, electricity, bridges, schools and so on," said Takehiko.

Regarding the likelihood of loans above USD2 billion, Takehiko considered that it was normal, and would be processed on ADB's board of directors.

"We need board approval for this, but we want to process this loan quickly," Takehiko said.