RI banking on achieving Rp 6,000 exchange mark

RI banking on achieving Rp 6,000 exchange mark

NEW YORK (Dow Jones): Indonesia is fully committed to achieve foreign exchange stability and is aiming at getting its currency below Rp 6,000 to the dollar level, the governor of the central bank said Wednesday.

Speaking to reporters leaving the Manhattan headquarters of Chase Manhattan Bank where he was addressing Indonesia's creditor banks, Bank Indonesia Governor Sjahril Sabirin said he wanted to get the foreign exchange 'rate more line with the strength of Indonesia's economy.'

Sabirin and Indonesian Finance Minister Fuad Bawazier were leaving a meeting with bankers assembled in New York to attempt to find a framework to address the country's $68 billion corporate debt overhang.

Sabirin stressed that the reestablishment of confidence in his country's economy is essential to stabilize the rupiah.

"We believe that with that the policy (the new International Monetary Fund agreement) will be stronger," he said.

The central bank governor said he addressed bankers with respect to the country's current economic situation, especially in the context of the new IMF agreement.

Last week, the IMF and Indonesia agreed to compromise on yet another plan, the third in six months, to allow the disbursement of a $43 billion rescue package.