TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati said the rupiah's current depreciation is not caused by investors' exit from the bond market. She said that investors are rebalancing their portfolios while keeping a close look at market situations.
"They are repositioning [their investment portfolios] based on the price they have and the prospects they are seeing. If they have hope over what's happening in the United States, they will see and decide whether the risks are now smaller or bigger," she said in Jakarta Friday, November 11.
Sri Mulyani said today's risks are actually low, as the state profile and debt ratio is low. Indonesia's state budget deficit is also lower compared to other countries.
"Our bonds have very low risks. So there's no reason to worry about the foundation of the state budget management that you [feel like] you have to sell state securities (SBN)."
The minister said the government is monitoring all fundamental economic conditions that may affect the rupiah. She said Indonesia's economic growth is among the highest in the world.
"We have tracked the exposure of our state and private debts, and they are relatively is a smaller [risk] position," she said.
ANGELINA ANJAR SAWITRI
