Senior deputy governor Mirza Adityaswara said one of the key drivers of exports should ideally be the exchange rate and the rupiah was currently undervalued.

“If we want to push the manufacturing sector, it should be undervalued, not by much, but only slightly,” he said in a discussion held by the alumni of the University of Indonesia’s School of Economics.

He added that the rupiah was slightly undervalued, and was competitive enough for exports, taking into consideration the currency’s real effective exchange rate (REER).

The International Monetary Fund defines the REER as the nominal effective exchange rate – a measure of the value of a currency against a weighted average of several foreign currencies – divided by a price deflator.

An increase in the REER index means that exports become more expensive and imports become cheaper. Therefore, an increase indicates a loss in trade competitiveness. – The Jakarta Post

Foreign workers can hold posts in labour unions

The Malaysian Trades Union Congress (MTUC) has no objection to foreign workers holding posts in labour unions as long as the democratic process is adhered to.

MTUC secretary general N Gopal Kishnam said the Trade Unions Act currently allows foreign workers to be members of unions but does not allow them to hold positions.

With the signing of the Trans-Pacific Partnership agreement, the government will have to “liberalise” the Trade Unions Act, Industrial Relations Act and the Employment Act, he said.

This would enable foreigners to hold positions in the unions.

“What matters is whether they can serve the membership or not. If someone can serve the membership, then why not?” he said. – The Star Online