Finance Minister: BSF Is Active When Economic Conditions In Beware

INDUSTRY.co.id - Jakarta - Finance Minister Sri Mulyani Indrawati said the initiative "Bond Stabilization Framework" (BSF) will be active if based on the Financial System Stability Committee (KSSK) assessment of economic conditions in a state of alert.

"It was done under the status of 'crisis management protocol' status has increased from normal to alert," said Sri Mulyani in Jakarta, Monday (28/05/2018)

The Bond Stabilization Framework is one of the mitigations prepared by the government in the form of short and medium-term framework to anticipate the impact of the crisis on the domestic Securities (SBN) market.

Sri Mulyani explained that early warning indicators from four authorities in KSSK in the Ministry of Finance, Bank Indonesia, the Financial Services Authority and the Deposit Insurance Corporation show the current economic condition is still in normal condition.

"Currently I emphasize 'crisis management protocol' status remains normal according to 'assessment' KSSK," she explained.

Nevertheless, she added, all components of KSSK will improve coordination of the current economic conditions and are prepared to take action and anticipate the disruption that could threaten financial sector stability.

"We will continue to coordinate and be alert in looking at environmental changes and will not hesitate to respond timely, appropriate dosage, so as to maintain the stability of the financial system," said Sri Mulyani.

Previously, the government had initiated the "Bond Stabilization Framework" which is a short and medium-term framework to anticipate the impact of the domestic market crisis on Government Securities (SBN).

The short-term measures in this stabilization framework include the purchase of SBN in the secondary and medium-term markets in the form of "bond stabilization fund". (Ant)