REPUBLIKA.CO.ID, JAKARTA -- Minister of Finance, Bambang Brodjonegoro, said the world economic unstability was predicted to continue until the US Federal Reserve (the Fed) issued a decision regarding the adjustment of interest rates.
"We wait until September, until the FOMC (Federal Open Market Committee) meeting. Hopefully in this condition, we still can maintain our economic stability," he said, in Jakarta, Tuesday (26/8).
Bambang stated that the current economic condition is still under control. All macro indicators showed no crisis signs. It was different with the financial crisis in 1998.
"Our economic growth was still positive in the first half, in 4.7 percent. The trade balance was surplus and the current account deficit was down. Macro conditions were still good, the NPL and CAR were also in a healthy condition,” he explained.
Related to the decision of People's Bank of China/PboC that recently cut the interest rates by 25 basis points, Bambang said that it would not affect directly to Indonesian economy.
The decision of the PBoC had more impact on the internal situation of China who wish to encourage the consumption sector and to improve the performance of the economy that had experienced a decline.
"The cute rate affected internal economy and boosted the economic growth, but that effects came out when China did devaluation, and China (probably) still continues to devalue, because the yuan is still overvalued," he said.
Although in the last few days, the exchange rate and stock markets pressured due to global influences, but on Tuesday afternoon, it had gained or got a positive response from market participants.
It was seen from the exchange rate trade of interbank in Jakarta, that moved by 25 points to Rp 14,024 per US dollar compared to the previous position at Rp 14 049 per US dollar.
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