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Indonesia central bank says to keep tight stance; focus on current account balance
[JAKARTA] Indonesia's central bank will focus its efforts on improving the current account deficit and maintaining a tight monetary stance, the governor said on Wednesday, as Southeast Asia's biggest economy looked to ease jitters over its weak currency.
President Joko Widodo held high-level talks with senior central bank and economic ministers late on Wednesday, as the rupiah hit its lowest level since August 1998.
"The current tight condition will not be loosened if inflation and the current account deficit are not going in a good direction," Bank Indonesia Governor Agus Martowardojo said after the Jakarta meeting.
"BI will review its stance but in general we will maintain a tight stance."
Indonesia's economy was in a "good enough condition"compared with other emerging markets and a trade surplus was seen for 2015, said Mr Martowardojo, adding that BI was always in the forex market to guard against high rupiah volatility.