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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: Indonesia's chief economic minister today urge state firms to avoid

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Speaker 2: making huge dollar purchases due to the depreciating rupiah. I'm

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Speaker 2: happy to welcome Shrimu Yani Indrawati, Indonesian Finance minister. Minister,

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Speaker 2: it's really good to get your perspective. How big a

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Speaker 2: headache is the strong dollar for you right now?

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Speaker 1: Well, certainly the movement of the vccine state, it will

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Speaker 1: affect many of the Indonesian economy and financial.

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Speaker 3: On the export side, of course.

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Speaker 1: The revenue is going to be much better because they

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Speaker 1: are going to receive a local currency, but we also

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Speaker 1: in this case dependent on some import and that will

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Speaker 1: then translate it into a higher rupiah to the dollar

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Speaker 1: and important inflation. It can also affect the inflation in Indonesia.

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Speaker 3: So we have to be very careful.

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Speaker 1: At this very moment, especially because of the movement coming

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Speaker 1: from the policy coming from the advanced country, especially United States.

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Speaker 1: Then the imaging country have to be very very figilant

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Speaker 1: with this development. But what we've already done since the

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Speaker 1: as a financial crisis global financial crisis, a lot of

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Speaker 1: exercis has been done in order to em and say

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Speaker 1: of the financial sector.

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Speaker 3: And it looks like we might have done thing.

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Speaker 1: So on economic point of view, we are actually having

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Speaker 1: a very good structure and resilient.

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Speaker 3: To that point, what else can you do?

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Speaker 2: Because the speed of upside for the dollar as well

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Speaker 2: as the absolute level is quite intense. What are some

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Speaker 2: of the tools at your disposal to help the strong dollar,

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Speaker 2: to help the sovereign and fiscal market also.

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Speaker 1: Well, we have to make sure that the macro stability

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Speaker 1: will continue to be maintained, and in this case on

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Speaker 1: a monetary and physical side, we work very closely with

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Speaker 1: Governor Perry in order for us to be able to

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Speaker 1: adjust the macros tent in order to adapt with this

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Speaker 1: new level of pressure. In this case, for the central Bank,

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Speaker 1: they definitely have their interest rate policy rate in terms

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Speaker 1: of responding the currencyituation. And for us in a physical site,

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Speaker 1: we have to make sure that the budget can play

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Speaker 1: an effective and credible shock absorber.

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Speaker 3: On the one hand, we have to make sure that.

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Speaker 1: The deficit is going to be within or below the

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Speaker 1: three percent. This is what the Indonesia physcal prudence which

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Speaker 1: is going to be continued to be implemented. On the

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Speaker 1: other hand, we have to make sure and be more

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Speaker 1: selective and actually expenditure side and making sure that the

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Speaker 1: revenue that will also increase due to this stronger because

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Speaker 1: of our revenue is actually in a four x denomination

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Speaker 1: that can also be used in the most optimal way.

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Speaker 1: So a combination of monetary fiscal in order for us

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Speaker 1: to be able to maintain the macro stability and prudence

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Speaker 1: will be very important.

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Speaker 3: On the corporate side, I think.

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Speaker 1: They need to be really look at how their exposure

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Speaker 1: to the for X, and many of them is already playing.

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Speaker 3: Or in this case doing the hedging policy at the

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Speaker 3: corporate level.

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Speaker 1: I think Indonesia will be continued resilient in this kind

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Speaker 1: of situation, but yes, need to be very.

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Speaker 4: Figilan so a minister when it comes to economic growth

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Speaker 4: and some of the policies that have been implemented already

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Speaker 4: under way Doodo and of course some of the new

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Speaker 4: policies that will probably be implemented when the new president

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Speaker 4: takes over in October. Here the growth targets, the most

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Speaker 4: foreign investors have said is still around that five percent mark.

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Speaker 4: Is that still achievable?

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Speaker 1: We are very confidence given the resiliency of the economy

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Speaker 1: during previous shock post pandemic. In this case, high commodity

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Speaker 1: price now the higher for longer with the interest rate

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Speaker 1: and inflation globally, I think Indonesia still maintained five percent

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Speaker 1: growth and supported by strong export as well as.

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Speaker 3: Current account surplus.

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Speaker 1: These need to be maintained and I think within the

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Speaker 1: new government this kind of policy will be continue implemented. First,

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Speaker 1: strengthening the structure of the economy, including continue progressing on

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Speaker 1: a downstreaming industry so that the value added and a

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Speaker 1: competentiveness is going to be creating a much more buffer

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Speaker 1: for the Indonesia.

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Speaker 3: Second one the macroprudence.

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Speaker 1: In this case both on the monetary central bank independent

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Speaker 1: and focus on stability and physical policy.

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Speaker 3: That is adjusting to many structural.

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Speaker 1: Issue but at the same time maintaining a prudent principle

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Speaker 1: is going to be.

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Speaker 4: Very under your watch. Under Wadoto's watch, you've done a

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Speaker 4: lot to increase foreign investment, particularly in the manufacturing sector.

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Speaker 4: Just this week we heard from Tim Cook he was

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Speaker 4: visiting there in Bali in Indonesia, making the case that

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Speaker 4: maybe potentially Apple would be willing to set up manufacturing

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Speaker 4: operations there. How far along are you in those discussions

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Speaker 4: with Apple at all.

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Speaker 1: Well, we've actually very consistent in reforming the investment climate

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Speaker 1: in Indonesia. We have passing a very difficult omnibus slot

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Speaker 1: to improve the investment climate and to simplify many of

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Speaker 1: the business process. That's become one of the very important

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Speaker 1: fundamental for us to attract policy reform, regulatory reform. On

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Speaker 1: the other hand, we also in this case have many

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Speaker 1: potential in our economy.

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Speaker 3: You have a.

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Speaker 1: Downstream industry of strategic mineral, the electronic electric vehical battery industry.

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Speaker 3: Indonesia have a lot of.

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Speaker 1: Natural resource which fit with this kind of trend. And

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Speaker 1: then in this case, our ability to continue improve our

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Speaker 1: investment climate with the bigger and very potential market will

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Speaker 1: attract more investors, including Apple.

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Speaker 3: In this case, there.

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Speaker 1: Are some discussion is already being made and we do

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Speaker 1: hope it can be translated into the FDI.

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Speaker 4: All right, Nonosir, appreciate you taking time to be with

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Speaker 4: us today. The Indonesian Finance Minister down at the IMF

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Speaker 4: meetings in Washington, Shrimayani and jo Body