REPUBLIKA.CO.ID, JAKARTA - Governor of Bank Indonesia (BI) Agus Martowardojo believes that Federal Reserves (US Central Bank) reducing monetary policy stimulus carefully to avoid panic in financial market. Now, all parties keep investors' trust by maintaining fundamental economy from internal turmoil.

"The Fed will ensure good communication and they will not make panics in financial market. We also have concrete plans to control inflation and improve balance of payments, current account deficit, and import which is considered too big," Martowardojo said recently.

Martowardojo said that maintaining confidence of foreign investors was very important as they had capital to support balance of payments and could reduce pressure of current account deficit. Director of Indonesia Stock Price Appraisal (IBPA), Wahyu Trenggono said foreign investors did not in rush to withdraw their money after stimulus was conducted. They will calculate profit and loss if they withdraw from investment now.

Trenggono considered that withdrawal of stimulus would have an impact on bonds market because 30 percent of Indonesian bonds are bought by foreign investors. But he hopes that government has some attempts to anticipate this impact, such as bond stabilization framework. 

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