RI forex control unlikely

RI forex control unlikely

NEW YORK (Dow Jones): Standard & Poor's does not expect Indonesia to move in the immediate future to impose capital controls, the global ratings service announced Thursday.

Market speculation about a move by Indonesia surfaced this week following Malaysia's imposition of controls on its capital account, according to John Chambers, managing director of S&P.

"On the other hand, it is possible that Bank Indonesia could reintroduce some form of exchange-rate band," Chambers added.

S&P said it rates The Republic of Indonesia's long-term foreign currency debt at triple-C-plus with a negative outlook.

The Republic of Indonesia's rated debt consists of one US$400 million Yankee bond and one US$300 million Euro FRN (with US$227.5 million outstanding).