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)