RI has anticipated Fed’s tapering: Govt

JAKARTA. The government has downplayed the US Federal Reserve’s (Fed) tapering announcement, saying it had been expecting it and had prepared necessary measures to maintain a conducive domestic economic situation.

“We had predicted that the tapering-off would occur and the market, I think, had anticipated it too so there is no unnecessary anxiety. The impact will not be severe,” Coordinating Economic Minister Hatta Rajasa said at the State Palace on Thursday.

“We have our own house to focus on, instead. Indonesia, just like other emerging economies, had expected the tapering off. It is important that at least the announcement has resulted in certainty,” the minister added.

Investment Coordinating Board (BKPM) chairman Mahendra Siregar shared Hatta’s sentiment. He said the Fed’s decision would not affect long-term foreign investments.

 “Foreign investors have made their decision to invest in Indonesia based on long-term prospects. They take into account factors such as Indonesia’s economic growth prospects and its sustainability rather than short-term market dynamism,” he said.

Mahendra said he was still optimistic that the 2013 foreign direct investment target, set at Rp 390.3 trillion (US$32 billion), still could be met by the end of this month. (Bagus BT Saragih/The Jakarta Post)