The U.S.-triggered global credit crisis will not bring Indonesia to a financial crisis similar to that of the late 1990s, although the government will remain on high alert, President Susilo Bambang Yudhoyono said Monday.

In a meeting with Cabinet ministers and businesspeople to discuss the impact of the global crisis on Indonesia, Yudhoyono said the country’s economy was now in better shape than it was in the 1997-1998 period.

"The financial crisis we had ten years ago will not happen again because the conditions were much more different back then. We have managed to improve on the factors that caused the crisis. I'm not saying that our condition is secure; we should always be alert," he said.

In 1998, the economy contracted by over 13 percent.

"We should use this moment to maintain our economic growth at 6 percent and safeguard our country from this global crisis."

The statement came as the local stock index plunged by more than 10 percent, the biggest drop since the 2002 Bali bombings, followed by the rupiah depreciating against the U.S. dollar.

The rupiah fell 1.5 percent on Monday to Rp 9,575, as stock market investors sold their local holdings and converted gains to the dollar. The index dropped 10.03 percent to close at 1,648.74 points.

However, acting Coordinating Minister for the Economy Sri Mulyani Indrawati said the local market should not overreact in times of crisis.

"The government will continue to maintain the equilibrium of all financial indicators to be as rational and consistent as possible," she said.

She added the government would continue to maintain both economic growth and the inflation rate at stable levels, but with some adjustments.

"We might have to find a more rational equilibrium between the two indicators, from a combination of between 6.4 percent growth and 6 percent inflation, to higher inflation of around 7 percent with a lessening of growth to 6 percent."

The economy accelerated by 6.4 percent in the second quarter of 2008. The government foresees growth slowing to 6.2 percent this year from 6.3 percent in 2007.

To increase market liquidity, the central bank will, among other measures, simplify the minimum reserve requirement scheme, Bank Indonesia governor Boediono said.

Other strategies will be discussed by the central bank Tuesday.

On exports, Trade Minister Mari Elka Pangestu remained upbeat despite the turbulence in the U.S. economy, the world's largest importer.

"We will continue to diversify our export market to Middle East countries, Russia and Central Europe, while strengthening our market in Asia," she said.

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