Govt. to “police” the financial market

The Jakarta Post | Fri, 10/10/2008 11:00 PM | Headlines

The government will bring in the police and prosecutors to reign over any ill motive fueling fluctuation in the financial sector, the financial ministry said.

“We are assembling a task force to monitor the situation continuously,” Finance Ministry Sri Mulyani Indrawati said in Jakarta on Friday accompanied by the Attorney General, the National Police Chief, state ministers and top ranking officials from the central bank.

Mulyani said the creation of the task force was necessary to consolidate respond to any illegal attempts that could undermine the country’s economy.

“We are protecting the economy in the interest of all, but if there is anyone who tries to reap benefit from the current market condition by violating the law, we will not hesitate to enforce the law,” Mulyani said.

The rupiah, government bonds and share prices listed at the Indonesian stock market are suffering from negative sentiments fueled by anxiety over a liquidity crisis in the United States and Europe.

The currency fell beyond 9,800 to the dollar at some point on Friday for the first time since January, Bloomberg reported. Meanwhile, seven-year government bonds fell for a 10th day, pushing the yield to the highest since October 2005.

The Indonesian stock exchange remained closed on Friday after experiencing a 21 percent correction this week. It is expected to resume trading on Monday.

Earlier on Friday afternoon the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) summoned brokers and representatives of several financial institutions allegedly responsible for spreading rumors and false information regarding the condition of listed companies and security firms.

No announcement on the result of the meeting so far. (and)

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