ID :
55693
Wed, 04/15/2009 - 20:16
Auther :
Shortlink :
https://www.oananews.org//node/55693
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GOVT CONSIDERS FACILITIES ADEQUATE TO SAFEGUARD FOREX RESERVES
Jakarta, April 15 (ANTARA) - The Indonesian government considers various facilities it has provided through bilateral schemes so far are adequate to safeguard the country's foreign exchange reserves.
Therefore, Indonesia will not likely need other schemes, the finance ministry's head of fiscal policy, Anggito Abimanyu, said here on Wednesday.
In the case of the Philippines, he said, that country's foreign exchange reserves were only around US$36 billion and therefore it was considering to use the flexible credit line facility (FCL) which was multilateral.
He said Indonesia's foreign exchange reserves until the end of 2009 were expected to reach US$54 billion while various bilateral swap arrangement facilities that had been provided so far were considered adequate.
"The schemes are merely for contingency and not to be withdrawan. We need not withdraw much from the FCL as swap arrangements with Japan and China are already adequate," he said.
He said Indonesia would not even need an FCL if market conditions were improving.
"If the G-20's exit plan works, the world financial sector improves and banking recapitalization in the US approved by the US government capital inflows will return to developing countries," he said.
Early this month, Bank Indonesia and the Bank of Japan signed an agreement to increase the value of their bilateral swap arrangement from US$6 billion to US$12 billion.
The agreement was made in the framework of the Chiang Mai Initiative which was part of the financial cooperation between the Association of South East Asian Nations (Asean) and its partners China, Japan and South Korea.
Based on the agreement Indonesia would conduct a rupiah/dollar swap up to US$12 billion. The agreement was made as a precautionary measure in case short-term liquidity was needed.
Indonesia and Japan first signed a bilateral swap agreeement in 2003.
The rise in the value of the bilateral swap arrangement shows continuing solidarity among the Asean+3 members with regard to maintaining the financial stability in the region in the midst of current global economic slowdown and increasing risk of capital repayments in the financial market. ***
Therefore, Indonesia will not likely need other schemes, the finance ministry's head of fiscal policy, Anggito Abimanyu, said here on Wednesday.
In the case of the Philippines, he said, that country's foreign exchange reserves were only around US$36 billion and therefore it was considering to use the flexible credit line facility (FCL) which was multilateral.
He said Indonesia's foreign exchange reserves until the end of 2009 were expected to reach US$54 billion while various bilateral swap arrangement facilities that had been provided so far were considered adequate.
"The schemes are merely for contingency and not to be withdrawan. We need not withdraw much from the FCL as swap arrangements with Japan and China are already adequate," he said.
He said Indonesia would not even need an FCL if market conditions were improving.
"If the G-20's exit plan works, the world financial sector improves and banking recapitalization in the US approved by the US government capital inflows will return to developing countries," he said.
Early this month, Bank Indonesia and the Bank of Japan signed an agreement to increase the value of their bilateral swap arrangement from US$6 billion to US$12 billion.
The agreement was made in the framework of the Chiang Mai Initiative which was part of the financial cooperation between the Association of South East Asian Nations (Asean) and its partners China, Japan and South Korea.
Based on the agreement Indonesia would conduct a rupiah/dollar swap up to US$12 billion. The agreement was made as a precautionary measure in case short-term liquidity was needed.
Indonesia and Japan first signed a bilateral swap agreeement in 2003.
The rise in the value of the bilateral swap arrangement shows continuing solidarity among the Asean+3 members with regard to maintaining the financial stability in the region in the midst of current global economic slowdown and increasing risk of capital repayments in the financial market. ***
