KKSK monitors market exchange transactions: Finance Minister

KKSK monitors market exchange transactions: Finance Minister

Finance Minister Sri Mulyani Indrawati (Humas Menko Perekonomian)

Jakarta (ANTARA News) - Finance Minister Sri Mulyani Indrawati said that the government, along with Bank Indonesia (BI) and the Financial Services Authority (OJK) through the Financial Sector Policy Committee (KKSK), will examine and monitor the behavior of market participants in foreign exchange transactions.

"We, along with OJK and BI through the KKSK Forum, will continue to research and monitor the behavior of market participants and its legitimacy in detail," Sri Mulyani stated, after a meeting at the Presidential Palace Complex in Jakarta, on Monday.

Sri Mulyani noted that KKSK would examine and monitor their behavior on whether they needed foreign exchange transactions for industrial purposes or transactions that did not have legitimacy.

"We will take decisive steps for what is not legitimate, so as to avoid speculation or negative sentiments," the former World Bank Managing Director noted.

He explained the foreign exchange transactions that have legitimacy, such as transactions in the framework of imports to meet the needs of raw materials.

That is when we import raw materials.

"It is a capital item and, indeed, there is a business to pay its debt. There is a legitimate need and not a speculative one," he explained.

The Minister of Finance estimated that the pressure on the national economy still exists, among others, as a result of crisis in Argentina.

"This situation is still going to take place because the crisis in Argentina is still running, and it might have an impact on other developing countries," he elaborated.

The government and other economic sector authorities will continue to strengthen the economic foundation. Exports need to be continuously encouraged by directing the Indonesian Export Financing Institution, which is currently 9 years old, with an activity volume of Rp100 trillion. This is done to focus more on potential markets and potential exporters to immediately increase national export growth.

According to him, the Office of the Coordinating Minister for Economic Affairs and the Office of the Ministry of Maritime Affairs will try to improve the business environment so that capital inflows from foreign direct investment can increase.

When asked about strategic steps to deal with external economic pressures, the Minister of Finance explained that facing an external situation like this, Indonesia must assume to continue to strengthen the economic foundation.

"What we do now is directly on the economic foundation. The factors seen by the market are weak points, and hence we have to strengthen them," he noted.

He added that the market had seen Indonesia`s weak point in the balance of payments, namely in the current transaction and trade balance.

Reporting by Agus Salim
Editing by Eliswan Azly