JAKARTA (TheInsiderStories) - Chairman of Financial Service Agency (OJK) Muliaman Hadad met with Indonesian Stock Exchange (IDX) and bankers on Monday night discuss on the latest condition of financial market. As we know the financial market decreased dramatically due to the United State’s (US) election resulted.
Muliaman said, at the meeting He instructed IDX and all the financial industry players do not take irregularity action and cautious in corporate action. He also asked all the players to prepare themselves in case of turmoil in the global economy,
He continued, based on the discussion all the industry players agreed Indonesia economy in a positive condition and the business running well. The market turmoil in two days trading, according to him, is temporally and will bounce back in the coming days.
“Even so we are still watching the market closely. All the industry players agree our economy in a positive position towards Indonesia,” Muliaman told press in OJK office last night.
On the same occasion the President Director of PT Bank Negara Indonesia Tbk (IDX: BBNI) Achmad Baiquni considers that the weakening of the financial market is only temporary. Vice President Director of PT Bank Rakyat Indonesia Tbk (IDX: BBRI) Sunarso echoed the Baiquni statement that Indonesia’s economic fundamentals are still in very good condition and the and there are no liquidity problems in the banking of Indonesia.
“As we know the weakening od financial market conditions more because of the uncertainty after (Donald) Trump elected as US’s president. So it is important how we prepare ourselves taking care not to add unstable market because our economic fundamentals all really good,” said Baiquni.
He added, more the liquidity of banks is still good, whereas NPLs problem also began to improve, as well as a significant economic growth. So that should be anticipated only a factor of uncertainty in the global economy.
Since Friday the Jakarta Composite Index dropped around 6% and ended at 5,115 level on Monday. While Rupiah strengthened to Rp13,325 or rose 0.43 percent compared to Friday’s level at Rp13,364 agaiunst US dollar.
Coordinating Minister for Economic Affairs Darmin Nasution looked optimistic the rupiah will bounce back and recover as usual in short term period.
“It could still be back again, I’m optimistic the rupiah will return to their previous state,” Nasution said.
Nasution also saw post-election America, US’s Federal Reserves will keep raising interest rates as predicted earlier. Even Bank Indonesia also sees the possibility of a rate hike this year The Fed is open and will go up one at the end of this year.