Palembang, S Sumatra (Antara Bali) - Bank Indonesia (BI) Governor Agus Martowardojo said the central bank has taken anticipatory steps to prevent the possibility of financial outflows.
"The anticipatory steps to prevent financial outflows is important to maintain the domestic economic stability which is highly vulnerable to the global economic turmoil," he said in a national seminar and dissemination of 2014 Indonesian economic report here on Thursday.
That the global economy has shown no sign of improvement has posed a challenge for the nation to address it, he said.
The global economy currently grew 3.3 percent, falling short of the predicted 4 percent, he said.
"The economic turmoil in Greece has a great impact on the global economy which grew below 4 percent," he said.
After all, Indonesia managed to withstand the economic turmoil which had the potential to cause an economic crisis, he said.
The success was attributable to Bank Indonesia's efforts to maintain economic stability by anticipating the possibility of financial outflows and implementing monetary policy, he said.
The monetary policy included tight interest rate to control inflation rate and current account deficit, he said.
Inflation must be kept in check because high inflation might reduce the people's income as a result of soaring commodity prices, he said.
Likewise, the current account deficit caused by exports in excess of imports must not go unheeded because it could reduce the country's foreign exchange reserves, he added. (WDY)
