Indonesia's financial stability is under control: minister

Indonesia's financial stability is under control: minister
Indonesia's Finance Minister Bambang Brodjonegoro.
PHOTO: The Jakarta Post

The government asserted on Thursday that Indonesia's financial stability and its macro economic indicators remained under control despite external and domestic pressures.

"Based on our assessment in the second quarter of 2015, our financial and macro economic conditions are still under control amid external and domestic pressures," Finance Minister Bambang Brodjonegoro said, as quoted by kompas.com.

The stability of the Indonesian economy, according to Bambang, can be seen from positive indicators shown by comprehensive studies carried out by the central bank, Financial Service Authority (OJK), Deposit Insurance Corporation (LPS) and the Finance Ministry.

However, the Financial Sector Stability Coordination Forum (FKSSK) has warned about the pressure of an under performing stock market and currency value.

The forum argues that the current value of the rupiah, which has been hit hard by the yuan devaluation, does not reflect its fundamental value.

Meanwhile, pressure from the stock market is a result of a combination of negative sentiments from external factors and companies' poor performances.

Therefore, FKSSK agrees to strengthen the coordination between government institutions to apply policies to resolve problems in stock and currency markets.

Bambang said the government would issue a short-term policy that would help maintain the stability of the rupiah in the market, in addition to the central bank's interference in the currency market to stabilize rupiah values.

The government and the central bank would also be present in the market to maintain the stability of treasury notes, Bambang added.

 

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