Indonesia prepares itself for US withdrawing stimulus policy

Cipanas, West Java (ANTARA News) - Indonesia is preparing itself for the eventuality where the United States might withdraw liquidity, Presidential Spokesman Julian Aldrin Pasha said.

President Susilo Bambang Yudhoyono has asked for inputs from his economic ministers with regards to the issue, Julian told newsmen at the presidential palace in Cipanas, Bogor, West Java, on Monday.

"Its implementation is not yet certain but the possibility is there. Global economic conditions also depend on the United States' economy. We have discussed what we will do and what policies should be implemented to deal with the situation. The impact will indeed be massive, but Indonesia must be ready to meet it," he stated.

Meanwhile, President Yudhoyono held a limited cabinet meeting on economy at the presidential palace in Cipanas on Monday to discuss the development of economic conditions in the country.

Julian revealed that at the meeting, the head of state was briefed about national economic conditions, including the reason for the exchange rate of the countrys rupiah currency being depressed during the past few days.

"During the past few days, economic conditions have been pressured, the Coordinating Minister for Economic Affairs pointed out. He said that there were two factors that had caused it, namely internal factors related to the current account deficit and external factors, which were the speculations surrounding the U.S. Federal Reserves (Feds) pending decision," he added.

Julian further said that "anticipatory measures have been reported to the President in case the Feds policy is implemented."

He said that President Yudhoyono was monitoring economic developments and always received reports about it from the ministers concerned, and had also suggested anticipatory measures that could be adopted in case they were needed.(*)