Indonesia unveils measures to put a halt to economic turmoil
AFPJAKARTA -- Indonesia on Friday unveiled measures aimed at boosting confidence in Southeast Asia's biggest economy after huge outflows of foreign capital this week sent stocks and the rupiah tumbling.
August 24, 2013, 12:00 am TWN
The moves come as regional emerging economies, including Indonesia, are hit hard by overseas investors fleeing on concerns that the United States may soon wind down off its huge stimulus program.
Jakarta's main stock market fell almost nine percent in the four days ending Thursday, while the rupiah at one point fell below the psychologically important mark of 11,000 to the dollar, its lowest since mid-2009.
Indonesia's economic woes have been compounded by domestic problems, such as slowing growth, surging inflation and a widening current account deficit.
But ministers on Friday announced steps aimed at reducing the deficit and making investment easier in what is a notoriously difficult business climate.
To encourage foreign investment, authorities would speed up the processing of applications for projects in the agricultural and mineral sectors, said Hatta Rajasa, the coordinating minister for the economy.