Today's rupiah reaches Rp. 14,820 per US dollar.

The rupiah even touched the Rp.15,000 mark.

Not infrequently many people worry about the weakening of the rupiah that can affect the price of goods that become expensive.

Reporting from Kompas.com, Joko Widodo-Ma'ruf Amin's Campaign Team Leader, Erick Thohir assessed that Indonesia's economy was still in reasonable condition.

Also Read: Philippines Turns to the Highest Inflation, Duterte Blames Trump

He stated that Indonesia's current economic situation was far different from the 1998 economic crisis even though the rupiah against the US dollar had penetrated Rp. 15,000.

"I think this is the case, that if we look at the world economy, equilibrium is now happening."

"Is the Indonesian economy considered bad? No."

"The data shows that in 1998 the position is far away, but there is equilibrium in the world," said Erick in the Media Center of the Jokowi-Ma'ruf Campaign Team, Menteng, Jakarta, Friday (09/09/2018).

He also believes the government's economic team is able to solve the economic problems that are now plaguing Indonesia.

When compared to the Malaysian ringgit, Indonesia actually has other strengths that are much better, but it seems that it is not seen or rather not noticed.

Malaysia has a figure of 4.15 ringgit per US dollar.

When viewed from the figure it is clearly 4 better than 14,000.

Also Read: Curse of Former Malaysian PM: Cost of Living Increases, Selling Milo Ice Ice 'Somewhat Expensive' In fact Entering Prison

But the issue of the bankruptcy of his country actually went everywhere.

Malaysian Finance Minister Lim Guang Eng explained Malaysia's total debt reached 1,087 trillion Ringgit (Rp3,500 trillion) with a ratio to GDP of more than 60 percent.

Reportedly, the debt was disbursed in the case of his Prime Minister (PM) Najib Razak in the 1Malaysia Development Berhad mega corruption scandal (1MDB).

Indonesia instead.

Even though it owes up to Rp5,000 trillion, the ratio of its debt amounts is only 29 percent of GDP.

With this Indonesia actually becomes safer.

In addition, what makes Indonesia's economy even stronger is oil reserves.

Shilpa Sharma from Kurukshetra University explained in this related detail.

He explained that economics and gold are indeed related.

"Let's take the economy, say, the US Economy."

"There, when the price of gold is high, it's not considered a good thing."

"When the price of gold falls, it clearly means that the economy is healthy. Therefore, investors have better investment options than just ordinary gold. Like, stocks, bonds, real estate, etc.," he said.

Also Read: Pencak Silat Claimed Malaysia, Kemenpora Indonesia Denies with Historical Evidence



Illustration of Indonesian gold reserves. (Tribune)

He explained about the history of gold.

Gold was discovered nearly 40,000 years ago.

Previously, gold was only used for jewelry.

Eventually it became a sign of nobility.

Egypt was the first to have a complete gold and silver civilization.

Then there was a barter system.

Because there are too many shortcomings, finally the introduction of money begins.

However, gold is always universally accepted. This has a value attached to it.

"Even now, all currencies are valued by the amount of gold that remains in reserve."

"This ensures that the outstanding paper currency has a fixed value."

"And with that, ensure the survival of the paper currency."

Also Read: Malaysian Finance Minister Accused of Corruption, Indonesian Finance Minister Has Many Achievements

"In 1900, the US had 90% of money as paper currency. Everything changed after the world war, when the US became the first country to return to gold."

"During the Great Depression, they had a Gold Reserve Act where private ownership of gold was banned."

"But then, the dollar became dominant. And the action was abolished in 1975."

What about Indonesia's gold reserves compared to Malaysia?

Gold Reserves in Indonesia averaged 82.99 tons from 2000 to 2018.

Reserves reached an all-time high of 96.45 tons in the second quarter of 2000 and a record low of 73.09 tons in the fourth quarter of 2006.

Whereas Gold reserves in Malaysia averaged only 36.56 tons from 2000 to 2018.

It reached an all-time high of 38.57 tons in the first quarter of 2017 and a record low of 35.46 tons in the first quarter of 2014.

Indonesia itself quotes from tradingeconomics.com, having large gold reserves.

For details, see the picture below:



Spare parts of gold in the world. (tradingeconomics.com)

Well, it turns out that there are many factors that keep Indonesia's economy strong. (Intisari-Online.com/Adrie