The prolonged global financial crisis and the fall of Indonesia`s composite index early this week have prompted government officials to formulate anticipatory steps, yet they were convinced Indonesia`s economy would not seriously be affected.
Indonesia was considered to be able to manage its external debts and had relatively strong economic fundamentals, a main asset seen as an instrument to fend off the current global financial turmoil.
“Indonesia`s debts have been managed well and its economic fundamentals are solid so its economy will not be affected by the crisis in the United States and Europe. I believe that the economic turmoil in the United States and Europe is caused by the fact that those countries have a big amount of debts,” Finance Minister Agus Martowardojo said.
President Susilo Bambang Yudhoyono and several ministers discussed the economic situation in the US and Europe at a limited cabinet meeting following the fall of composite index early this week.