Macro-Economic Stability To Anticipate Impact Of Greek Crisis:BI

Jakarta (Antara Bali) - Bank Indonesia governor Agus Martowardojo said here on Monday pressures caused by Greek crisis could be overcome if economic stability is maintained.

Maintaining economic stability and keeping communication with market players could give positive perception over condition in Indonesia, despite the Greek crisis, he said.

"Bank Indonesia certainly is of the view that there will be pressures on money and capital markets but we believe we can overcome them well. What is important is we must maintain macro-economic stability and our communication," he said.

Agus said the central bank had taken anticipatory measures to deal with various possible external pressures that could disrupt national economic condition including if Greece fails to pay its debt and exit from the European zone.

"Actually the external factors that  we have been alert of in the past three months are normalization of The Fed's policy and Greek upheavals. So, the possibility of Greece exiting from the Euro zone after the referendum will be something that we have already anticipated," he said.

The anticipation is needed because it is connected with investors' reaction against regional upheavals although geographically and economically Indonesia has no direct dependence on Greece in trade or investment.

On connection with that maintaining macro-economic stability and communicating with market players would be very important to create sense of peace because every crisis that happens may cause worries on investors and capital outflows to safe haven countries, he said.

"Impact on trade and investment is not too influential but it there will be on perception towards macro-economic condition. Therefore we must immediately be alert as soon as we see risk is rising there will be risk off and flight to quality to the US and Japan," he said.

Agus said he would worry if capitals in developing countries flow to safe haven countries such as the US and Japan which are considered safer and economically established because of the Greek crisis.

He however believed Indonesia's macro-economic condition right now is good.

"What we are prioritizing is maintaining our macro-economic stability. Besides that we must also strive to stabilize the rupiah and keep informing that we have already anticipated the Greek development and therefore we need not be worried too much as we will be able to pass through the situation well," he said.

Greece has confirmed it would be unable to pay off its 1.54 billion Euros debt to the International Monetary Fund and voted against austerity offer in exchange for liquidity assistance. (WDY)