Indonesia spared from Baring's scandal: Mar'ie<\/p>\n
JAKARTA (JP): Minister of Finance Mar'ie Muhammad dismissed
\nyesterday the impact of the stunning financial scandal involving
\nthe British merchant bank Barings Plc. on Indonesia's capital
\nmarket and banking industry.<\/p>\n
\"However, the government will continue monitoring the Barings
\ncase, which has shaken the world's major financial and capital
\nmarkets,\" the minister told newsmen prior to a limited cabinet
\nmeeting on economy.<\/p>\n
The minister said that monitoring the Barings case is
\nimportant to ensure that the financial crisis would bring no
\naffect to Indonesia's economy.<\/p>\n
Barings has been put into the British administration after
\nreporting losses of more than 500 million pounds (US$795 million)
\nthrough trading of derivatives by one of its three financial
\nunits in Singapore.<\/p>\n
Barings' collapse resulted from failed transactions in the
\nderivatives market by a single trader, the 28-year-old Nick
\nLeeson.<\/p>\n
He was general manager of Baring Futures (Singapore), one of
\nthe London-based Barings' three major operations in Singapore.
\nThe others are a merchant bank with an active corporate financial
\narm and a profitable stock broking company.<\/p>\n
Leeson was reported to have fled from Singapore to neighboring
\nMalaysia, Thailand or Indonesia.<\/p>\n
Search<\/p>\n
Chief of the Armed Forces General Feisal Tanjung said
\nyesterday that the Indonesian police are ready to help search for
\nBarings' trader if there is a request from the international
\npolice.<\/p>\n
The Malaysian police said they are looking for the British
\nderivatives trader accused of causing the collapse of the old
\nBritish investment bank after receiving a request in Singapore.<\/p>\n
Securities dealers on the Jakarta Stock Exchange (JSX) said
\nthat stock trading on the market had returned to normal after
\nsuffering a slight decline early this week in the wake of the
\ndisclosure of the Barings scandal.<\/p>\n
Trading on the Jakarta stock market, in fact, remained low on
\nTuesday but securities dealers said that the sluggish trading was
\nnot caused by concern over the Barings financial crisis but due
\nto the holiday mood.<\/p>\n
\"Investors mostly sidelined on the market, preparing for the
\nIdul Fitri holiday on the weekend,\" Dandossi Matram, a securities
\ndealer, said of the market situation.<\/p>\n
Trading on the JSX will be closed today due to the Idul Fitri
\nholiday, where Moslems celebrate the completion of their fasting
\nmonth. Trading will resume on Tuesday.(hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indonesia-spared-from-barings-scandal-marie-1447893297",
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