Indonesia to focus on redressing current account balance: Bappenas

Jakarta (ANTARA) – Minister of National Development Planning and head of the National Development Planning Board (Bappenas) Bambang Brodjonegoro said the government has to keep the focus on reducing the countrys current account deficit despite the U.S. Central Bank raising its fund rate higher.

“What is important is that we have to show that we are set to redress the structural problem of deficit in current account balance,” Bambang said here on Thursday.

He said the increase in The Fed fund rate has been anticipated by the market players that resulted in rupiah weakening.

The rupiah in inter-bank transaction on Thursday morning lost 17 points, trading at the level of 14,908 per U.S. dollar from 14,891 per dollar earlier.

The Fed raised its fund rate by 25 basis points, its third increase this year and the 8th since the end of 2015.

The Fed said the U.S labor market was strengthening and economic activities were brisker with household spending and business investment growing strongly.

The U.S. Central Bank predicted that the countrys economy would grow 3.1 percent this year higher than its previous estimate of 2.8 percent.

The Fed officials said the Central Bank still plans another fund rate hike this year. Market players said the Central Bank would still raise the fund rate in mid December.

Source: ANTARA News