"It is impossible for the US not to be careful. It will make sure that it communicates well and does not shock the market," Martowardojo said here on Monday.
He further pointed out that the best way for Indonesia to deal with such an external issue was to retain the investors` trust by insulating the fundamental domestic economy from any internal fluctuations.
"We have action plans to control the inflation, to fix the purchasing balance and the current account, as well as to control our high imports. In the mid-term, this plan will allow the market to trust Indonesia and in the end, they will choose Indonesia over other countries for investing," Martowardojo noted.
Thus far, Martowardojo added, the investors` trust had helped attract capital that had supported the purchasing balance and reduced pressure on the current account deficit.
"We can`t help but admit that Indonesia has a current account deficit. Therefore, in order to afford our economy, we need foreign investment to support our purchasing balance. If this mechanism can be fixed, we will have a better economic structure," he stated.
In the medium to long term, structural reformation in industrial labor, infrastructure including power plants, asphalt roads and licensing, as well as corruption eradication could help convince investors more, Martowardojo explained.
The governor also confirmed that Bank Indonesia will continue monitoring the national banking development, even though its governance and risk management are better than the one seen during the 1997 to 1998 crisis.
"The banking condition in 2013 is healthier and we are optimistic that the large to small-scale banks are also in a good condition, but we will continue with the monitoring, since we do not want to see this well-run system rendered inefficient," Martowardojo noted.
EDITED BY INE
(A060/KR-BSR/F001)
Editor: Jafar M Sidik
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