IMPACT OF FINANCIAL CRISIS ON REAL SECTOR TO LAST FOR TWO YEARS: BI

Jakarta, Nov 28 (ANTARA) - Bank Indonesia (BI / the central bank) has predicted that the impact of the on-going global financial crisis on the production sector would last for two years while on the financial sector for six month.
"The impact of the financial crisis on the financial sector is relatively shorter namely six months then that on the real sector," Bank Indonesia Governor Boediono said.
After attending a cabinet meeting in Presidential office on Thursday, the central bank governor said that the impact of crisis on the financial sector would last until the coming six months only.
"We have to prepare anticipatory steps for the two sectors. BI has just explained to the government the steps it will take. It turned out that BI's steps were in line with the government's." he said.
In the meantime, the rupiah tumbled against the US dollar in the Jakarta interbank spot market early Thursday as US dollar purchases continued in the run up to the year end.
The rupiah traded at Rp12,150/Rp12,250 per US dollar, down 150 points from Rp12,000/Rp12,150 per US dollar a day earlier.
PT Bank Himpunan Saudara Tbk.'s foreign exchange analyst Rully Nova said here on Thursday that the rupiah was still searching for a new equilibrium point.
"The exchange rate at above Rp12,000 per US dollar has made the domestic money market sluggish," he said. ***2***