TEMPO.CO, Jakarta - The Finance Ministry has decided to pay close attention to the government bonds (SUN) for the next few days to anticipate any effects of the British referendum or British Exit (Brexit) and how it will affect the Indonesian economy.
"We're just monitoring the movement since this [Brexit] is temporary. So, there is no need of intervention," Finance Minister Bambang Brodjonegoro said at his office in Jakarta on Friday, June 24, 2016.
Bambang believed that the impact of Brexit will not last for a long time, so that preparing the bond stabilization framework (BSP) is unnecessary. Bambang explained that the government would conduct an intervention when the finance sector is negatively affected in the long run.
"The BSF [is necessary] if our market collapses. This is an external factor," Bambang added.
Fortunately, Bambang added, the Finance Ministry on June 7, 2016 issued 3 billion Euro worth of Euro Bonds before Brexit was initiated. The government issued another 8.36 billion Euro worth of Euro Bonds a week later.
"So, you can imagine what would happen if we did not issue [the Euro Bonds]. It would be difficult to have a window to issue Euro Bonds,” Bambang said.
Robert Pakpahan, director general of Finance Ministry's financing and risk management office, hopes that the impact of Brexit on domestic finance would be temporary.
"Hopefully [the impact of Brexit] won't be long. We'll see during the state bond auction next Tuesday," Robert said.
PUTRI ADITYOWATI
