* Bank Indonesia says will intervene in market where
* To maintain rupiah stability with various existing
JAKARTA Jan 25 Bank Indonesia, the central
bank, said on Friday it had no plans to introduce new
instruments to deal with the decline of the rupiah currency and
would continue to intervene in the market where necessary.
Indonesia's rupiah has been one of the world's worst
performing currencies over the past year, dragged down in part
by concerns over a widening current account deficit. It was
trading in late afternoon at around 9,665/85, down on the day,
but above lows touched earlier this month.
"We try to maintain the stability of the rupiah with various
existing instruments. There is no fundamental change of
instruments or anything," the deputy governor for monetary
policy, Hartadi Sarwono, told reporters.
"But we know the problem is a shortage of dollar supplies
... from day to day. I need to reiterate this because our
balance of payments is still in surplus overall, which means
that the current account deficit could still be covered by the
But the nature of the capital account, in which a major part
was from goods and services, meant there was not always enough
to cover the shortfall in the trade balance.
"Therefore, BI (Bank Indonesia) must from time to time ...
venture into the market to reduce the gap between supply and
demand," he said.
He said he expected the current account deficit to improve
and that demand for foreign exchange could be met by the market.
"As usual, we will intervene. We'll see how the numbers are
now. If there is a huge need for oil and gas imports, we will
increase more there. So there is no instrument that has changed,
only the amount and timing."
(Reporting by Adriana Nina Kusuma; Writing by Jonathan
Thatcher; Editing by Jacqueline Wong)