OJK Urges Financial Market to Monitor Greece Crisis

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  • TEMPO.CO, Jakarta - The Financial Services Authority (OJK) has advised investors and market players to be more aware of the possible impacts on the financial markets, which stems from the economic crisis in Greece - especially because there are still uncertainties about how long it is going to last.

    "This phenomenon has a global impact - although I am optimistic that this is only temporary in nature, we still don't know how long it is going to be until things recovers," said OJK's Chairman, Muliaman Hadad.

    "As such, we are advising players in the financial market, as well as its' associated regulatory bodies to keep an eye out of a possible fallout," said Hadad at his office on Wednesday, July 8, 2015.

    Hadad also stressed the importance of managing against risk - or hedging - goven the current circumstances in the global financial market. He also said that Indonesia will not face a liquidity crisis as a result of Greece's default - and that such risk could be avoided completely as long as the government could boost economic growth in the second half of 2015 by utilising its' budget efficiently.

    Meanwhile, the Indonesian Stock Exchange (IDX) Executive Director, Tito Sulistio said that turmoil experienced by the financial market is caused by the negative impact of Greece's default to the mindset of investors worldwide.

    "The market is volatile because of what happened in Greece. People are focusing too much on Greece that they forgot that the Chinese share market has fallen by around 30 percent in value," said Sulistio.

    "What could possibly happen in China scares me more than Greece," continued Tito.

    That said, the economic downturn is not expected to last, said Tito, because publicly traded companies in Indonesia are doing quite well despite the worldwide economic slowdown.