VIVAnews - Finance Ministry Director General of Debt Management, Rahmat Waluyanto said that foreign investors are concerned about the current political heat caused by Bank Century’s bailout case.
“They are concerned of domestic politics that have been considered a risk factor in investing,” Waluyanto told VIVAnews through a text message on Tuesday, March 2.
He went on by explaining about the perception of bond market players, especially foreign investors and ranking agencies, towards risk factors in investing in Indonesia.
According to him, the investors and the agencies consider Indonesian economy strong and its finance management policies, especially fiscals and debts, are running in a prudential and credible way.
They also extend their appreciation to fiscal and monetary authorities that did not only successfully put Indonesia through the crisis, but also make the country one of the three countries with positive growth during the crisis.
Regarding the bailout, Waluyanto said it was a common thing to do in many countries in critical situations in order to maintain public trust.
“I told them there were only a few Indonesians who understand about systemic risks. One of them even said crisis only occurs in the US,” he said.
Currently, foreign investors are holding Rupiah securities and foreign exchange with the total amount of Ro 280 trillion. “We have to maintain their trust”.
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Translated by: Nataya Ermanti
