English Debate with Economic Topic

Hallo selamat datang di website Mr. Eko. Pada kesempatan kali ini Mr. Eko akan memberi contoh transkrip debat bahasa Inggris dengan topik Ekonomi.

Motion: TH Support the Devaluation of Rupiah 

A currency's value is determined in relation to the value of other currencies; for example, how much of the other currency can be purchased with one unit of your home currency. In general, this is the currency pair's exchange rate, which fluctuates over time as currencies gain or lose value against one another. When a currency's value decreases in relation to other currencies, this is referred to as devaluation.

The term "devaluation" refers to a government policy of reducing the value of its currency or domestic currency relative to foreign money.

“Devaluation” refers to the process through which a country's currency is officially devalued within a fixed exchange rate regime.

The goal of the Rupiah devaluation is as follows:

Several objectives that the government wishes to accomplish by implementing a devaluation program include the following:

1. To promote exports and to restrict imports

It maintains equilibrium by adjusting the balance of payment position, the balance of payment and balance of trade, and the balance of trade.

2. Promote the usage of indigenous products by the Indonesian populace. This is possible because the value of imported goods becomes more expensive than the value of local or domestic goods.

3. If the balance of payments is restored, the value of foreign currency is projected to stabilize.

Devaluation is a term that refers to either a decrease in the exchange rate of the domestic currency against the foreign currency or an increase in the domestic price of one unit of the foreign currency. Since 1973, the majority of currencies have been floating, although the system of dirty floating permits governments/central banks to intervene to some level. The subject of weakening the currency's external worth is a contentious one in public policy debates. On the one hand, the IMF and World Bank advocate for devaluation as a critical component of their proposed policy package for LDCs. On the other hand, many economists and policymakers are adamantly opposed to currency devaluation, which has become a terrible word in a number of countries.

Technically, currency devaluation is a last choice when other fiscal and monetary measures such as demand management, financial incentives, and trade restrictions have proven ineffective in resolving the country's balance of payment problems by increasing exports and decreasing imports.

Positive Arguments

To my mind, it is critical to support the rupiah's devaluation because this government policy results in the following benefits:

1. Exports become cheaper, more competitive to overseas consumers. As a result, domestic demand is boosted.

2. Increased exports should result in a reduction in the current account deficit. Increased exports and aggregate demand can result in greater economic growth rates.

Devaluation of the rupiah enables the achievement of international market demand perfection in terms of quality and price reduction to a competitive level. As both developed and developing countries operate in the same worldwide market, it is difficult for Pakistan to offer a product that is also manufactured in France, Germany, or Holland at high costs. However, because we are competing with impoverished countries, it is critical for us to align our rates with those of our competitors in order to remain competitive.

Each new product goes through four stages, the first of which is the introduction stage. The introduction stage necessitates significant effort to promote the product and raise buyer awareness. At this point, it is critical to sell it for even less than the cost. That is why the government grants tariff concessions for a defined length of time, until the product becomes self-sufficient.

Each country keeps track of its overall imports and exports, as well as a balance of payment chart. When its imports exceed its exports and the balance of payment deteriorates, it becomes critical to swiftly raise exports. Reduced pricing are one of the quickest methods to boost exports.

When individuals begin to purchase imported goods and local industry begins to suffer, it is vital to dissuade them so that they reduce their expenditure on imported items and increase their expenditure on local goods. Devaluation is one approach for reducing imports and stimulating domestic manufacturing.

Price reductions achieved by devaluation have long-term consequences that can be observed over time.

The rupiah's depreciation has an effect on agriculture and agribusiness. Profits will accrue to businesses who utilize indigenous raw materials and develop commodities for primary export.

Negative Arguments 

I oppose rupiah depreciation for the following reasons:

1. Reducing the money supply

Deflation can deplete a society's money supply, resulting in a severe depression and disrupting the investment market.

2. Impeding economic activity

Because the price of a product falls, consumers can postpone their buying activities in the hope that the price of the product would decrease more. As a result, the economy's activity would stall and spiral deflationary influence will increase.

3. The next bad effect of deflation will be increased unemployment, as business industries would be unable to pay salaries for employees. Then, people's incomes will decline, and the amount of money in society will diminish as well.

4. Deflation increases the rate of return on investment. As a result, Indonesia's economy will become more complicated, as there will be no other commercial activity.

5. Deflation also rises number of the interest rest in a country to be 0 percent. Then comes the creditor's low interest rate.

6. Is likely to result in inflation because: • Imports become more expensive; • AD increases, resulting in demand pull inflation; • Businesses / exporters have less motivation to minimize costs because they may count on the devaluation to strengthen their competitiveness.

7. Reduces the purchasing power of citizens abroad. e.g. more expensive to holiday in Europe.

8. A significant and rapid depreciation may scare away foreign investors. It disincentivizes investors from holding government debt by essentially decreasing the value of their holdings.

9. The depreciation of the rupiah has the adverse consequence of reducing the consumer's purchasing power (decreasing demand). The poor are the primary beneficiaries of devaluation. Reduced demand will increase the cost of service and commodities production.

10. If the firm relies heavily on imported raw materials, the devaluation of the rupiah creates a significant challenge for the businessman. If the advertisement is targeted at the domestic market, it will resurface as a major issue. In this scenario, the depreciation of the rupiah has a detrimental effect on a company's production process.

With all of its drawbacks, devaluation has developed into an ad hoc policy. It is a more ad hoc solution during times of low demand. Rather than that, imperfect planning is required to anticipate when the original price level will be restored.

Devaluation carries a significant danger of inflation for the country; for example, if exports do not grow as a result of the price fall, the country would experience losses due to the increased cost of all imports, including domestic imports. The loss occurred as a result of the worldwide market's price decline.

Devaluation increases the value of external debts and, consequently, the amount required to service them.

Currency devaluation is viewed as a last resort strategy to be used if all other fiscal and monetary measures fail.

Prior to depreciating the currency in order to stimulate the economy through increased exports, additional considerations must be considered, such as reduced exports due to poor quality of goods, trade barriers, lesser value added commodities, and unavailability of export items, to name a few.

Continued currency depreciation may result in the illegal importation of products within the country. Such illegal import and export may result in the establishment of an illegal "parallel economy" within the country, which will be fully independent of the government.


English debate, economic, rupiah, devaluation, currency, positive, negative, arguments, debat bahasa Inggris


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