Jakarta (Antara) - Finance Minister Bambang Brodjonegoro is considering forming 'stabilization fund' to mitigate the impact of possible crisis as a result of economic slowdown.
"We are drafting the scheme. This is not a big reserve fund, but special fund for stability, for emergency. This is still a concept, not to be implemented in the near future," the minister said here on Wednesday night.
He said the stabilization fund concept would back up the scheme of 'Bond Stabilization Framework' (BSF), which has been a mitigation instrument by the government needed when there was a reversal in the capital flows that could disrupt stability.
BSF constitutes a framework of mechanism of coordination between related units at the Finance Ministry and state owned insurance companies under the ministry of state enterprises to buy state securities.
Apart from preparing BSF, the government has also set up Crisis Management Protocol (CMP) to provide early warning in facing possible crisis in the financial sector and to mitigate the pressure on the state finance.
The government also has standby loans at US$5.5 billion from multilateral agencies in a bid to comprehensively sustain economic growth and macro economic stability.
"BSF is a framework but this is not the end, as the next phase is stabilization fund. The format of this is what we are thinking over," the minister said.
The minister said he could not yet give a concrete description of the stabilization fund scheme of which one of the fund sources is the state budget, although, according to the original concept the fund source is permanent fund deposited at a special account that could be used in emergency.
"State budget is used only when necessary, but for the time being we are not yet up to that. We talk about framework first. We want to make sure that the framework would work when needed," he said.(*)
COPYRIGHT © ANTARA News Jawa Timur 2015
"We are drafting the scheme. This is not a big reserve fund, but special fund for stability, for emergency. This is still a concept, not to be implemented in the near future," the minister said here on Wednesday night.
He said the stabilization fund concept would back up the scheme of 'Bond Stabilization Framework' (BSF), which has been a mitigation instrument by the government needed when there was a reversal in the capital flows that could disrupt stability.
BSF constitutes a framework of mechanism of coordination between related units at the Finance Ministry and state owned insurance companies under the ministry of state enterprises to buy state securities.
Apart from preparing BSF, the government has also set up Crisis Management Protocol (CMP) to provide early warning in facing possible crisis in the financial sector and to mitigate the pressure on the state finance.
The government also has standby loans at US$5.5 billion from multilateral agencies in a bid to comprehensively sustain economic growth and macro economic stability.
"BSF is a framework but this is not the end, as the next phase is stabilization fund. The format of this is what we are thinking over," the minister said.
The minister said he could not yet give a concrete description of the stabilization fund scheme of which one of the fund sources is the state budget, although, according to the original concept the fund source is permanent fund deposited at a special account that could be used in emergency.
"State budget is used only when necessary, but for the time being we are not yet up to that. We talk about framework first. We want to make sure that the framework would work when needed," he said.(*)
Editor : Chandra Hamdani Noer
COPYRIGHT © ANTARA News Jawa Timur 2015