Indonesia is preparing a government regulation in lieu of law on financial system reform to accommodate a deeper crisis situation due to the pandemic, said finance minister on Tuesday (08/25) - Photo by Finance Ministry Office

JAKARTA (TheInsiderStories) – Chairman of Financial System Stability Forum (FSSF), Sri Mulyani Indrawati, ready to take quick steps to maintain the financial market under global pressures during the COVID-19 outbreak. She also claimed will use all the tools including the same protocol was implemented during 1998 crisis.

The minister of finance also expect the pandemic not last long and the domestic economy could rebounding soon. She asserted, her ministry, Bank Indonesia, Financial Service Agency, and Indonesia Deposit Insurance will continues to monitor the financial stability system during these days.

“We will take various measures so that stability is maintained even though the pressure is currently very large with the same protocol as the 1998 crisis,” said Indrawati.

While, BI governor Perry Warjiyo rated, selling panic in the financial market caused foreign investors withdraw their funds from emerging markets, including Indonesia. Until March 19, the central bank recoded the capital flight Rp105.1 trillion (US$6.78 billion).

In details, the Bank bought Rp92.8 trillion from the bond market and Rp8.3 trillion from the stock market. So far, BI has bought Rp163 trillion in bond market that had been released by foreign investors.

“What is happening right now is the global capital market panic and capital owners because of the rapid spread of the virus so that they release the assets they have and are converted to US Dollars, resulting in tightening liquidity,” he noted.

Therefore, said the governor, BI stabilization measures provide liquidity in order to create a capital market panic. He assured that foreign exchange reserves worth of $130.4 billion is more than enough to counter the COVID-19 impact.

“We will continue to coordinate with the government to make further steps to bring in foreign exchange. Our focus is on maintaining confidence and foreign exchange availability.

While, chairman of Financial Service Agency (FSA), Wimboh Santoso stated, the regulator has implemented various policies to maintains the market confidence. Together with the self regulator office, the agency has regulated short selling, auto rejection, halt trading, buyback scheme to curb the stock market.

“In the capital market, you don’t have to worry about everything listed on the capital market, fundamentally good. In the future, we will continue to make several options,” he asserted.

In the first session of today’ trading, Indonesian Rupiah touched the lowest level since 2013 at 16,040 against the US Dollar or dropped 0.88 percent compared to yesterday. While, the Jakarta Composite Index plunged 1.72 percent to 4,034.99.

US$1: Rp15,500

by Linda Silaen, Email: