Indonesia finance minister calls rupiah weakness 'temporary'

JAKARTA (REUTERS) - Indonesia's finance minister said the latest weakness in the rupiah was temporary, saying one of the reasons for it was concern over expected cuts in costly fuel price subsidies.

The government is still discussing with parliament measures to help the poor once fuel prices are increased.

It is still not clear when and if there will be a cut in the subsidies, which consume close to 20 per cent of the budget and contribute to a widening current account deficit.

"This weakening of the rupiah is temporary. One of the causes are worries within the country over the fuel price subsidies," Chatib Basri told reporters, adding the ministry had "coordinated" with the central bank over the issue.

The rupiah has fallen about 1.88 per cent this year.

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