Indonesia assures foreign investors

Kyoto (Antara News) - Indonesia assured foreign investors here on Monday that it had already made various reform efforts in the economic and financial fields, including in debt management which was now done transparently and with accountability.

A number of Indonensian government officials met representatives of investors such as Citigroup, Standard Chartered and Sumitomo Mitsui Banking Corporation, Nordic Investment, Nomura, JP Morgan, Daiwa Securities, BNP Paribasm ANZ and HCBC on the sidelines of the annual meeting of the Asian Development Bank (ADB) here on Monday.

The Indonesian officials attending the meeting included the finance ministry`s head of the fiscal policy, Anggito Abimanyu, the ministry`s director general of debt management, Rahmat Waluyanto, and the head of the Capital Investment Supervisory Board, Fuad Rahmany.

Anggito said the country`s foreign exchange reserves now totaled US$47.2 billion while its currency was stable at around Rp9,000 against the US dollar and gross domestic product at 6.3 percent this year.

"The country`s economy has been on the right track and is set to grow further," he said.

Waluyanto meanwhile said the country`s debt was now managed prudently, transparently and accountably.

He said the government`s priority was focused on the domestic market but foreign investors could be involved in it.

The Indonesian government would not issue more international bonds this year after it had issued US$1.5 billion worth of international bonds in February, he said. "We will not issue any more international bonds this year but in 2008 they will be issued again," he said.

Until now the government had issued state bonds up to around Rp46 trillion to help cover a deficit in the 2007 state budget.

He said the government predicted the deficit in the 2007 budget would rise from around 1.1 percent to between 1.5 percent and 1.8 percent. "The deficit will be covered by treasury bonds," he said.

He said the government estimated foreign capital that had come into the country had reached more than Rp10 trillion through the capital market and the treasury bond market.

The foreign capital that came through treasury bonds reached around Rp7.6 trillion and through the capital market Rp3.3 trillion. The inflow of foreign capital had increased the country`s foreign exchange reserves, he said. (*)
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