Indonesia stops energy projects worth $25 billion as rupiah hits 20-year low

Reading Time: 1 minute

Indonesia plans to delay $25 billion worth of power projects as it seeks to rein in a widening current-account deficit and a selloff in the nation’s currency in what it suspects is the result of “foreign speculation” against the rupiah.

The government will delay almost half of the planned 35 gigawatts of electricity projects as it wants to ease pressure on imports, Energy and Mineral Resources Minister Ignasius Jonan told reporters in Jakarta on September 4, Bloomberg News reported. The deferment may help reduce imports of about $8 billion to $10 billion, he said.

President Joko Widodo’s government is intensifying efforts to guard the rupiah, which is heading toward 15,000 to the dollar, a level last seen during the Asian financial crisis two decades ago. Bank Indonesia has adopted a number of measures to improve liquidity and authorities said they will clamp down on speculation in the foreign-exchange market to curb volatility. The government is also planning to curb imports of some consumer goods to ease pressure on the current-account deficit.

Indonesia´s finance minister said that authorities will take firm action against currency speculators as the rupiah hit its weakest levels since the Asian Financial Crisis in 1998. Finance Minister Mulyani Indrawati didn´t say what sanctions speculators could face, but warned that large currency transactions would be checked by Bank Indonesia and the Financial Services Authority to ensure they were based on trade or commerce, and not just playing the market.

“If there are parties who are making profits based on other people´s sacrifices, we will monitor it in detail and take firm action against these players who are profit taking,” she said.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 1 minute

Indonesia plans to delay $25 billion worth of power projects as it seeks to rein in a widening current-account deficit and a selloff in the nation’s currency in what it suspects is the result of “foreign speculation” against the rupiah.

Reading Time: 1 minute

Indonesia plans to delay $25 billion worth of power projects as it seeks to rein in a widening current-account deficit and a selloff in the nation’s currency in what it suspects is the result of “foreign speculation” against the rupiah.

The government will delay almost half of the planned 35 gigawatts of electricity projects as it wants to ease pressure on imports, Energy and Mineral Resources Minister Ignasius Jonan told reporters in Jakarta on September 4, Bloomberg News reported. The deferment may help reduce imports of about $8 billion to $10 billion, he said.

President Joko Widodo’s government is intensifying efforts to guard the rupiah, which is heading toward 15,000 to the dollar, a level last seen during the Asian financial crisis two decades ago. Bank Indonesia has adopted a number of measures to improve liquidity and authorities said they will clamp down on speculation in the foreign-exchange market to curb volatility. The government is also planning to curb imports of some consumer goods to ease pressure on the current-account deficit.

Indonesia´s finance minister said that authorities will take firm action against currency speculators as the rupiah hit its weakest levels since the Asian Financial Crisis in 1998. Finance Minister Mulyani Indrawati didn´t say what sanctions speculators could face, but warned that large currency transactions would be checked by Bank Indonesia and the Financial Services Authority to ensure they were based on trade or commerce, and not just playing the market.

“If there are parties who are making profits based on other people´s sacrifices, we will monitor it in detail and take firm action against these players who are profit taking,” she said.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid