Tag Archives: JakartaPost

JakartaPost – Satria Sambijantoro And Amahl S. Azwar – Bad Policies Could Cause A Repeat Of 1998 – 2 September 2013

Jakarta Post

Indonesia has not come up with “good policies” quickly enough as its current account deficit widens and its currency continues to plummet.

And the failure by policy makers to deliver the right responses to investors could lead the country to a repeat of the traumatic 1998 financial crisis, during which the economy also saw an overshooting exchange rate, slumping foreign exchange (forex) reserves, high inflation and a sharp slowdown in growth.

Former Bank Indonesia (BI) governor Darmin Nasution once blamed the deficit, which has occurred for seven consecutive quarters since late 2011, on President Susilo Bambang Yudhoyono’s unwillingness to curb fuel subsidies that had enlarged oil imports and created an unnecessarily high dollar demand.

Read the whole story at:  www.thejakartapost.com/ link to original article


JakartaPost – Govt Calms Worries Over Foreign Debts As Rupiah Weakens – 27 August 2013

Jakarta Post

The government is trying to calm the debt market, reassuring it that it has sufficient funds at its disposal to pay its dollar debts, as the local currency continues to weaken against the US dollar.

Investors are concerned that the increasingly weak rupiah together with the sharp spike in bond yields will swell the government’s debt payments and place a heavy burden on its coffers.

They say any further pressure on the state’s funds may cause the state budget deficit to breach the threshold of 3 percent of gross domestic product (GDP), which would violate the law.

Read the whole story at : www.thejakartapost.com / link to original article