Minister of Finance Sri Mulyani Indrawati accompanied by BI Governor Perry Warjio delivered a press statement after the Limited Meeting, at the Presidential Office, Jakarta, Tuesday (14/08) afternoon - Photo: President Office

JAKARTA (TheInsiderStories) – Indonesian government prepared to anticipate the global crisis impact to the country, said one senior official on Monday (03/09). Today, Rupiah dropped 0.71 percent to Rp14,815 against US dollar while the Jakarta Composite Index slipped 1.09 percent to 5,967.579 compared to end of last week.

Followed the Rupiah and JCI weakening, President Joko Widodo invited the economic ministers, Bank Indonesia and Financial Service Agency (FSA) to the State Palace to get an update on the latest information of Indonesian economic situation.

According to the Finance Minister Sri Mulyani Indrawati, President Widodo asked the economic leaders to escalated the coordination between the parties to curb the national economy from the global crisis.

“But once again, this situation is still going on because the conditions of the crisis in Argentina are still going to run and maybe will have a spill over effect on developing countries,” the minister told reporters after the limited meeting.

Therefore, she adds, government will strengthen the economic fundamental by improving the investment climates, increasing export and ease the regulation for the exporters and importers.

“If we face an external situation like this then we need to continuously strengthen our fundamentals. Which factor is considered as a source is one point that is considered weak for the market. And in our opinion it is a balance of payments,” Indrawati said.

In the short term, she explained, government will control the foreign exchange needs to face the Rupiah and JCI weakening. Together with the ministers of trade and industry, her ministry will evaluated the composition of commodities that have been imported.

The foreign exchange requirements needed by state-owned enterprises such as PT Pertamina and PT Perusahaan Listrik Negara also will evaluate without changing market sentiment, added the minister.

“Through Financial Sector Policy Committee forum we will also continue to monitor in detail the behavior of market participants, which ones require legitimate transactions (import of raw materials, capital goods, the business does exist and for debt payment needs) or which is not legitimate,” she stated.

She urged, for what is not legitimate, the government will take decisive steps not to cause speculation or negative sentiment to the market. Meanwhile, Chairman of Indonesia’ FSA Wimboh Santoso added, the market turbulences is temporary because there is negative sentiment from the global markets.

“We will continue to coordinate, keep on talking to the public so that people are not worried. We must also encourage exports and imports that do not need to be reduced. So it needs coordination,” he ended.