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IDX suggests publicly listed companies should adjust dollar debts
The Indonesia Stock Market (IDX) has suggested publicly listed companies should make adjustments between their revenues and dollar debts to prevent disruption of the performance of their financial work while the rupiahâs exchange rate weakens
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he Indonesia Stock Market (IDX) has suggested publicly listed companies should make adjustments between their revenues and dollar debts to prevent disruption of the performance of their financial work while the rupiah's exchange rate weakens.
'The homework both publicly listed and non-publicly listed companies have to work on is adjusting between their revenues and debts. Don't make dollar debts if their revenues are in the form of rupiah,' said IDX director Ito Warsito, as quoted by Antara news agency in Jakarta on Wednesday.
He said that despite the fact that the fluctuation of the rupiah exchange rate was still quite normal, all parties must still be cautious in the midst of a trend that led to Indonesia's trade balance and current account continuing to suffer deficits.
'Indonesia's trade balance and current-account deficit are still quite huge; therefore, one thing the government has to do is to strive to increase exports and to reduce imports,' said Ito.
Currencies in other countries, such as the Japanese yen, Korean won, Australian dollars and Indian rupee, have also suffered a weakening trend.
Ito said in safeguarding the rupiah, Bank Indonesia (BI) should play a more active role in maintaining its stability so that the market would not worry.
'Definitely, BI knows better about how far it should carry out interventions. It's a market mechanism. BI should also let the market act rationally. But if the rupiah weakens too much, BI should carry out interventions,' he said.
Commenting of the Jakarta Composite Index (JCI), Ito said the index's work performance was still positive, although it had experienced corrections in the last several days.
'There is no need to worry. The JCI is still growing double-digits this year,' he said.
According to IDX data, the JCI booked a 17.59 percent growth or stayed on the level of 5,026.03 points as of Dec. 16. (ebf)(+++)
