Indonesia c.bank says no plans for capital controls

JAKARTA | Thu Nov 19, 2009 12:59am EST

JAKARTA Nov 19 (Reuters) - Indonesia's central bank is "studying" possible limits on foreign ownership of short-term debt, but has no plans for controls on capital or the currency, the senior deputy governor said on Thursday.

Asked whether Bank Indonesia was considering curbing foreign ownership of short-term SBI debt, Darmin Nasution said: "We are not considering it, but studying it. Those are different things."

Later, when asked whether this could lead to capital controls, he said: "No, not at all" and also denied there were any plans for foreign exchange controls.

The finance minister declined to comment when asked about such controls. Indonesian central bank officials have played down the immediate threat of curbs on foreign investment after an earlier mention of controls hit the rupiah currency IDR=. (Reporting by Muklis Ali; Writing by Ed Davies)

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