Indonesia spared from Baring's scandal: Mar'ie
Indonesia spared from Baring's scandal: Mar'ie
JAKARTA (JP): Minister of Finance Mar'ie Muhammad dismissed yesterday the impact of the stunning financial scandal involving the British merchant bank Barings Plc. on Indonesia's capital market and banking industry.
"However, the government will continue monitoring the Barings case, which has shaken the world's major financial and capital markets," the minister told newsmen prior to a limited cabinet meeting on economy.
The minister said that monitoring the Barings case is important to ensure that the financial crisis would bring no affect to Indonesia's economy.
Barings has been put into the British administration after reporting losses of more than 500 million pounds (US$795 million) through trading of derivatives by one of its three financial units in Singapore.
Barings' collapse resulted from failed transactions in the derivatives market by a single trader, the 28-year-old Nick Leeson.
He was general manager of Baring Futures (Singapore), one of the London-based Barings' three major operations in Singapore. The others are a merchant bank with an active corporate financial arm and a profitable stock broking company.
Leeson was reported to have fled from Singapore to neighboring Malaysia, Thailand or Indonesia.
Search
Chief of the Armed Forces General Feisal Tanjung said yesterday that the Indonesian police are ready to help search for Barings' trader if there is a request from the international police.
The Malaysian police said they are looking for the British derivatives trader accused of causing the collapse of the old British investment bank after receiving a request in Singapore.
Securities dealers on the Jakarta Stock Exchange (JSX) said that stock trading on the market had returned to normal after suffering a slight decline early this week in the wake of the disclosure of the Barings scandal.
Trading on the Jakarta stock market, in fact, remained low on Tuesday but securities dealers said that the sluggish trading was not caused by concern over the Barings financial crisis but due to the holiday mood.
"Investors mostly sidelined on the market, preparing for the Idul Fitri holiday on the weekend," Dandossi Matram, a securities dealer, said of the market situation.
Trading on the JSX will be closed today due to the Idul Fitri holiday, where Moslems celebrate the completion of their fasting month. Trading will resume on Tuesday.(hen)