Indonesia President Assures Economy In Better Shape Than 200

Indonesian President Susilo Bambang Yudhoyono said Friday that the domestic economy is better prepared to weather the risks of a potential global slowdown than it had been in 2008.

The president's comment follows those of other senior Indonesian officials aimed at calming the market after fears of a possible global double-dip recession fueled risk aversion, hurting the country's stock market and currency.

The Jakarta Composite Index, Indonesia's main stock index, was down 4.4% at 0818 GMT, off its intraday low. The rupiah declined, with the dollar trading at IDR8,550, up from IDR8,505 late Thursday. Traders suspected Bank Indonesia to have sold around $50 million to halt the rupiah's slide.

"We managed to minimize the impact of the 2008 global economic crisis...(Although) we hope what's happening in the U.S. and Europe do not lead to another crisis, it is our responsibility to anticipate and prepare ourselves, " Yudhoyono said.

"No need to panic as our current conditions are better than 2008," the president added.

Indonesia's economic growth slowed in 2009 due to the global economic crisis, but the country still managed to expand 4.5% thanks to its vast domestic market and relatively strong banking system.

Bank Indonesia Research Director Perry Warjiyo earlier in the day underlined that the country's foreign exchange reserves, the country's first line of defence against currency speculators, stood at $122.67 billion at the end of July, compared with $51.64 billion at the end of 2008. Source: Nasdaq.com