We could see together its impact in Bangkok, Manila and also Jakarta that have suffered a strong blow."
Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono is confident Indonesia will be able to pass through worsening economic situation in the country as well as in the region recently.

"Our economic situation in general is good. Compared to that of 2005 and 2008 it is still far stronger and the challenges we are now facing God willing will also be managed well," he said at his office here on Wednesday.

He made the statement in response to recent economic developments marked by declining index in the past four to five days and depreciation of the country`s rupiah currency against the US dollar while the slow economic growth has also begun to be felt.

The President said the present situation was not only faced by Indonesia but also the region as well as the world.

He described the present situation as being similar to that in 2005 before the price of subsidized oils was raised and in 2008 when the world was hit by financial crisis.

President Yudhoyono said the present situation was triggered among others by the US Fed`s quantitative easing policy that had affected global liquidity.

Other factors include Chinese economic growth in the first quarter which was below the expectation and therefore gave negative sentiment to the global market and as a result regional stock markets dropped followed by a decline in foreign exchange rates, he said.

"We could see together its impact in Bangkok, Manila and also Jakarta that have suffered a strong blow," he said.

In view of that, he said, the government, Bank Indonesia, the Financial Service Authority and the Deposit Guarantee Corporation (LPS) would keep striving to overcome and manage the problem well.

"As I have said the government, Bank Indonesia, the Financial Service Authority and LPS would keep working to manage it under the Financial System Stability Forum (FFSK) that has already been set up," he said.

"Bank Indonesia certainly will focus on the monetary issue while the government is working on managing the fiscal condition," he said.

(Reporting by Muhammad Arief Iskandar/H-YH)

Editor: Priyambodo RH
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