Jakarta - Finance Minister Purbaya Yudhi Sadewa explained a number of things to reporters at the Presidential Palace Complex, Jakarta, Thursday, July 23.
Regarding universal banking in Indonesia which is still being discussed, it has not been decided. Purbaya added, the implementation of universal banking in Indonesia has not been approved. The Financial Services Authority (OJK) has a different view.
Universal banking allows one bank to run commercial banking services as well as investment banking activities. In addition, Purbaya explained to reporters about the government's plan to issue Panda Bonds of around 1 billion US dollars to cover part of the budget deficit while expanding the country's financing sources.
According to Purbaya, Chinese investors' interest in yuan-denominated bonds is quite good. However, the final results and the rate of return are still pending the closing of the bidding process.
Panda Bonds are foreign-issued debt securities in the Chinese market in renminbi or yuan currency. The Minister of Finance Purbaya also said that the use of direct yuan and rupiah transactions could reduce Indonesia's dependence on the US dollar.
The strategy is also considered to help maintain the value of the rupiah exchange rate. The government will use the Local Currency Transaction or LCT scheme in transactions with China. Through this scheme, payments are made using each country's currency without first being converted into US dollars.
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