Indef Doubts Jokowi's Rupiah Rescue Efforts will Work  

TEMPO.CO, Jakarta – Eny Sri Hartati, executive director of the Institute for Development Economics and Finance (Indef), has reservations about President Joko Widodo's eight tactics to stabilize the rupiah rate against the US dollar. She doubts the programs' effectiveness in improving the situation.

Eny said on Friday, March 13 that the policy to impose temporary safeguard on imported products with dumping indications is something that cannot be implemented immediately. She said that Eny it would take at least one year of assessment to prove that a country is practicing dumping policies.

The program to tax foreign shipowners and shipping companies, she said, will increase the transport costs of local products to be exported. If local entrepreneurs still rely on foreign ships, the freight costs will surge.

"If a foreign voyage is given tax, will the freight cost be burdened on the products that we export? We must be careful about this," she said.

The tax incentive policy for foreign companies that do not send dividends to their parent companies in their countries of origin will affect the dividend demand. "Dividends to foreigners are very positive because they reduce the demand for US dollar," he said.

President Joko Widodo plans to release a rupiah stabilization package containing eight tactics to move the real sector. The tactics include the provision of incentives, including tax allowances and others.

DEVY ERNIS | TRI ARTINING PUTRI