Foreign Ownership In Government Securities Remaining 14.8 Percent, President Jokowi: Vulnerable To Influence The Exchange Value Of Rupiah When Overcrowded By Foreigners

Capture President Jokowi's screen in the Outlook of the Indonesian Economy 2023. (Photo: Doc. Antara)

JAKARTA - Indonesian President Joko Widodo (Jokowi) revealed that foreign ownership in Government Securities (SBN) continues to decline with the current portion of only 14.8 percent.

"At that time, the SBN (2014-2015) was 38.5 percent controlled by foreigners, now only 14.8 percent are controlled by foreigners," said President Jokowi at the Indonesia Economic Outlook event in 2023, quoted by Antara, Wednesday, December 21.

According to the President, if the ownership of SBN is controlled by foreign investors, the rupiah exchange rate will be vulnerable to volatility when the domestic macro economy is shaken.

In addition, the President said, currently Indonesia's current account balance in the third quarter of 2022 has also a surplus of 8.9 billion US dollars or 0.9 percent of Gross Domestic Products.

The government, said the President, continues to carry out structural reforms to strengthen economic stability.

The President said that in 2014-2015, Indonesia was still in the frangile five. This term refers to developing countries that are prone to economic shocks due to the large influence of foreign investment.

During the 2014-2015 period, there was also a taper tantrum or global economic turmoil caused by the United States' strict monetary policy.

In 2014, the current account deficit or indicators of trade in goods and services between Indonesia and abroad showed a deficit of 27.5 billion US dollars and decreased to 17.5 billion US dollars in 2015. The President compared the data to Indonesia's current account balance which currently has recorded a surplus of 8.9 billion US dollars in the third quarter of 2022.

"Therefore, at that time I said we must dare to change this, our structural reforms so that we can do things that endanger our macroeconomics (anticipated)," said the President.

The President said that he always asks for the latest data related to the economy to the ranks of ministers every morning. He was reluctant to only accept normative statements without any evidence and concrete data regarding economic improvements.

"Sir, this is already better," yes, how much is the figure? No, yes, yes. I ask how much is it from, because it is very important, "said President Jokowi.