Jakarta - Indonesia's central bank predicted the financial
crisis that is rippling out from the United States to the rest of the
world would shackle Indonesia's economic growth and cause a credit
shortage for local business players, media reports said Monday.
'The shortage of global liquidity will be felt as a result of this
crisis,' said .Boediono, governor of Bank Indonesia.
'We must be prepared to face this over the next six months to one
year,' The Jakarta Post quoted Boediono as saying.
Boediono, who like many Indonesians uses only one name, made the
remarks after attending a meeting with economic officials Sunday to
discuss measures on how to deal with the negative impact of the
global liquidity crisis.
He forecast that the global liquidity shortage would only
stabilize once developed economies were on a safer footing.
Another development needed to bring the liquidity crisis to an
end, Boediono said, is the recapitalization of assets that have been
abandoned by investors.
'We will strengthen the banking sector,' the governor said. 'Our
target is to maintain sustainable lending growth that can support
acceptable economic growth and controllable inflation.'
Meanwhile, Vice President Jusuf Kalla said the impact of the
crisis would certainly not be as substantial on Indonesia as on
countries such as China and India, which are large exporters to the
United States.
'All countries would be affected, so the question is to what
extent,' Kalla was quoted as saying by the state-run Antara news
agency. 'The impact varies with each affected country, and I believe
the impact on Indonesia will not be as strong as that on other
countries.'
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