VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Financial Counsellor and Director of the Monetary and Capital Markets Department of The International Monetary Fund  (IMF) Tobias Adrian, stated that the international currency exchange rate including the rupiah are under pressure due to the strengthening of the United States Dollar. In his presentation of the Global Financial Stability Report in Nusa Dua Bali, nevertheles, according to Tobias, the Indonesian government could overcome it by opening the door to wider foreign investment to enter Indonesia. In addition, according to him, the Central Bank of Indonesia or Bank Indonesia can also take intervention steps to ensure that liquidity remains stable.

"So because there’s current account deficit Indonesia has to fund itself externally from international investors that is why an exchange of depreciation can be a shock absorber. And that is a good thing in our advise. Now of course the central bank of Indonesia has also intervene in foreign exchange market in order to make sure that liquidity condition in the market orderly and that is also very much consistent with the IMF advise on how to stabilize market financial conditions. 

The Global Financial Stability Report (GFSR) in October 2018 found that global short-term risks to financial stability have increased, reflecting increasing pressure in developing countries and rising trade tensions. According to Tobias, this risk, although still moderate, can increase significantly. Intensification of concerns about emerging markets, a wider increase in trade tensions, the realization of political and policy uncertainty, or faster than expected tightening in monetary normalization, can lead to sharp tightening in financial conditions. This, according to Tobias, increases the urgency for policy makers to increase efforts to improve the resilience of the financial system by completing the financial regulatory reform agenda and developing macroprudential policy tools. (VOI/Ndy/Trans NUKE/AHM)

Indonesian President Joko Widodo and Malaysian Deputy Prime Minister, Wan Azizah Wan Ismail in a bilateral meeting at the Bogor Presidential Palace on Tuesday October 9th, 2018 discussed an effort to promote sustanaible palm oil business. The Indonesian Foreign Affairs Minister, Retno Marsudi who accompanied the President said that Malaysian Government had asked Indonesia to work together to promote sustanaible palm oil industry to the world  through Council of Palm Oil Producing Countries (CPOPC). The effort is done to counter negative issues on palm oil that happen to the two countries as the biggest palm oil producers in the world.

"The Deputy Prime Minister has earlier mentioned about palm oil. It means that both countries, like it or not, have to work together to promote the sustanaible palm oil and the President said ok and this is good cooperation reflected in CPOPC. CPOPC is organization of palm oil producers which members are Indonesia and Malaysia. And we work together.through CPOPC, said Retno Marsudi.

Moreover Minister Retno Marsudi said that as Malaysian Prime Minister, Mahatir Mohamad during his visit to Indonesia recently also revealed the same thing. Mahatir asked Indonesian government to fight the negative campaign against palm oil launched by the European Union. The European Union accuses that palm oil plantation causing environmental damage can stall the commodity export from Indonesia and Malaysia. According to Mahatir the accuse was baseless and unproven. Retno added besides palm oil commodity, Malaysian Deputy Pime Minister Wan Azizah mentioned about terrorism termination by Intel information exchange. The Deputy Prime Minister has also promised to increase the security in her country’s water territory with big and sophisticated patrol ship. This follows the kidnapping of two Indonesian citizens working on Malaysian fishing boats in Sabah waters, Malaysia last month. (VOI/REZHA/trans: NK/AHM)

Minister of Communication and Informatics Rudiantara launched Multi-function Satellite Project in the sidelines of a series of  International Monetary Fund ( IMF)- World Bank Annual meeting on Monday (8/10) in Nusa Dua Bali. The launch was attended  by Minister of Finance, Sri Mulyani Indrawati and Minister of Public Work and Public Housing, Basuki Hadimuljono. He said some of heads and representatives of State Owned Enterprises contributed in the governmental development projects. Minister Rudiantara on his speech said that it is the right time for Indonesia to have satellite that can connects all Indonesian people though internet, particularly  in supporting educational world and health in Indonesia.

“Indonesia has two hundred and twenty six thousand  schools including Elementary School, Junior High School and Senior High School. Almost 90 thousand schools have not had internet connection. More than 4 thousands Center for People’s Health have not had internet connection. Almost 50 thousands from 75 thousands sub-district offices and villages  have not connected with internet. We must connect them. There are one hundred and fifty thousand spots that must be connected by us. It takes much time if we use terrestrial solution and withdrawn cables. We will use satellite. So, it is our own satellite. Captive for the government of Indonesia and especially for education and health,” said Rudiantara.

Moreover, Minister Rudiantara said that  the launch of Multi-function Satellite Project  has just reached project tender phase. He emphasized that there were many investors who were interested in supporting the existence of satellite in Indonesia. Rudiantara also said the project of Multi-Function Satellite will use scheme funding between Government Cooperation and Enterprises. He said the scheme guarantees the transparency and supports the  good governance in Indonesia. (VOI/Ndy/TRANS:AF/DP)

Indonesian Finance Ministry Encourages an effort to build innovative and creative funding scheme for fiscal security. Indonesian government has initiated some innovative and creative funding in form of cooperation between government and enterprises. It was stated by Indonesian Finance Minister, Sri Mulyani Indrawati on the sidelines of International Monetary Fund (IMF) and World Bank Annual Meeting in Bali on Monday (8/10). She said the effort is a breakthrough that can encourage development acceleration in Indonesia which does not depend on state’s funding through State Budget (APBN).

“If we look at the funding evolution from many development programs, recently we depend easily on State Budget. Meanwhile, there  is much fund comes from outside the State Budget, whether it is State Owned Enterprises ( BUMN) or foreign private sectors that want to participate. For those interested, we structurized it so that the participation from private sectors can be faster, but they are accountable. Ministry of Finance keeps on the track of the risk. That’s called contingent liability,” said Sri Mulyani.

Minister Sri Mulyani said that the government is continuously committed to supervising cooperation between the government and enterprises. It is aimed at keeping accountability from the running development program. (VOI/ANDY/TRANS AF/DP)