JCI Rekor 9.133, Menkeu Sebut Aliran Asing Penopang Pasar

Minister of Finance Purbaya Yudhi Sadewa (Antara)

JAKARTA - Finance Minister Purbaya Yudhi Sadewa denied the assumption that market dynamics were triggered by the issue of the entry of Wamenkeu Thomas Djiwandono into Bank Indonesia. He pointed to the movement of the index as the main indicator of market conditions.

The JCI was recorded at 9,133, the highest level of all time. "If the index rises to that level, there must be foreign flows. It is impossible for the domestic market alone to push it to such a level," said Purbaya at the DPR, Monday, January 19.

According to Purbaya, the increase in the index as high as that indicates the entry of foreign capital. With this flow, the supply of dollars in the country will increase. "Just wait for the time the rupiah will strengthen," he said.

He admitted that there was speculation in the market regarding the issue of the nomination of officials. However, Purbaya assessed that speculation did not reflect the fundamental condition. "Maybe some speculation. I think it won't be like that," he said, referring to the assumption that BI's independence would be lost.

The Minister of Finance emphasized that the economic foundation was still maintained. The government and BI ensure that the liquidity of the financial system is sufficient and agreed to be maintained together. On the fiscal side, government spending has been accelerated since the beginning of the year.

In addition, the government will improve the investment climate and implement policies on the supply and demand side. "We are doing everything. Monetary policy, fiscal policy, the real sector," said Purbaya.

He said the 6% growth target was achievable. The policy response is not instant, but the early signs are already visible at the beginning of the year. "JCI went up there not because market players were stupid. They saw the future economic prospects and our policies," he said.

Purbaya added that in the last three months, foreign capital flows to the domestic market have been positive.