OJK Ensures National Banks are Safe despite Rupiah Correction
30 March 2015 14:30 WIB
TEMPO.CO, Gowa – The Financial Services Authority (OJK) ensured that national banks are safe despite the rupiah's non-stopping correction, which had penetrated the Rp13,000 per US dollar threshold. OJK board of commissioners' chief Muliaman Hadad said that based on a stress test, no banks are in danger because of the correction.
Mr. Hadad said the OJK will continue to monitor the nation's financial services industry in a sustainable manner. Banking institutions are also asked to remain cautious in the face of exchange rate pressures.
The rupiah continues to weaken against the greenback. Last weekend, the rupiah was traded for 13,064 per dollar. On March 16, the rupiah hit a bottom low of Rp13,303 per US dollar, the cheapest since 1998.
Aviliani, an economist with the Institute for Development of Economics and Finance (INDEF), suggests Bank Indonesia (BI) to arrange the debt settlements of privates that are this semester "in order to organize the cash flow," she told Tempo yesterday.
BI governor Agus D.W. Martowardojo had said that the 30 percent portion of foreign ownership in Government Securities (SBN) is not something to worry about as it shows that Indonesia is still attracting investors. However, the high number of foreign ownership should be balanced with good economic governance.
So far this year, the net value of foreign funds flowing into government securities or the Bank Indonesia Certificates (SBI) has reached Rp42 trillion.
AWANG DARMAWAN (GOWA) | ODELIA SINAGA | URSULA FLORENE SONIA