Indonesia needs to prepare its defense for the day when the Federal Reserve starts to pump less money into global markets, its finance minister said Thursday.
“It’s inevitable that the Fed will one day end quantitative easing,” Muhamuad Chatib Basri told reporters in Hong Kong. “We need to focus on stabilization.”
The southeast Asian nation is grappling with a slowing economy, rising inflation, a weakening currency and a vast current account deficit.
And investors are anxious about next year’s presidential election, which will be the first time the country has shuffled its leadership in a decade.
Fears that the U.S. Federal Reserve would roll back its $85 billion a month bond-buying program as early as September had prompted sharp capital outflows from emerging markets, including Indonesia, in recent months.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.