ID :
39292
Wed, 01/07/2009 - 16:07
Auther :
Shortlink :
https://www.oananews.org//node/39292
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BI RATE CUT CONSIDERED POSITIVE FOR STATE DEBENTURE MARKET
Jakarta, Jan 7 (ANTARA) - The lowering of the Bank Indonesia (BI/central bank)'s benchmark interest rate (BI Rate) from 9.25 percent to 8.75 percent will have a positive impact on the state debenture (SUN) market, a finance ministry official said.
"I think it is good. It will revive domestic and foreign investors' confidence in investing their money in the SUN market," Rahmat Waluyanto, director general for debts management of the Ministry of Finance, said here on Wednesday.
He said that the lowering of interest rate was one of the factors that could revive investors' confidence following the downward trend and more controllable inflation rate.
Bank Indonesia (BI/the central bank) during its board of governors meeting on Wednesday decided to cut its benchmark interest rate, locally known as BI Rate, by 50 basis points to 8.75 percent.
BI Governor Boediono told a press conference following the meeting that the central bank took the decision after it evaluated the current economic and monetary conditions at home and overseas.
Waluyanto said that other confidence triggers included interest rate margin between the interests at home and those abroad (The Fed Fund) which was still profitable for investors.
"A stable and strengthening of rupiah exchange rate will create positive sentiment for investors, foreign ones in particular," he said.
He said that there was also an increasing trend in the ownership of SUN by foreign investors in the last several weeks.
"Previously, SUN ownership by foreign investors was about 16.2 percent of the total SUN values and it is now increased to 16.8 percent, Waluyanto said.
Commenting on the government's plan to issue global state 'sukuks' (sharia-based bonds), which was initially planned in 2008, the director general said the government still decided to go on the plan as part of its efforts to diversify its investment instruments.
"We are still looking for the correct time. We hope it can be realized anytime in the near future," he added.
"I think it is good. It will revive domestic and foreign investors' confidence in investing their money in the SUN market," Rahmat Waluyanto, director general for debts management of the Ministry of Finance, said here on Wednesday.
He said that the lowering of interest rate was one of the factors that could revive investors' confidence following the downward trend and more controllable inflation rate.
Bank Indonesia (BI/the central bank) during its board of governors meeting on Wednesday decided to cut its benchmark interest rate, locally known as BI Rate, by 50 basis points to 8.75 percent.
BI Governor Boediono told a press conference following the meeting that the central bank took the decision after it evaluated the current economic and monetary conditions at home and overseas.
Waluyanto said that other confidence triggers included interest rate margin between the interests at home and those abroad (The Fed Fund) which was still profitable for investors.
"A stable and strengthening of rupiah exchange rate will create positive sentiment for investors, foreign ones in particular," he said.
He said that there was also an increasing trend in the ownership of SUN by foreign investors in the last several weeks.
"Previously, SUN ownership by foreign investors was about 16.2 percent of the total SUN values and it is now increased to 16.8 percent, Waluyanto said.
Commenting on the government's plan to issue global state 'sukuks' (sharia-based bonds), which was initially planned in 2008, the director general said the government still decided to go on the plan as part of its efforts to diversify its investment instruments.
"We are still looking for the correct time. We hope it can be realized anytime in the near future," he added.
