The Federal Reserve’s decision to postpone its rollback of U.S. stimulus offered Asian policy makers extra time to address domestic economic fragilities as the region copes with diminished capital inflows.
Emerging nations should prepare for an eventual reduction in U.S. stimulus even as the Federal Reserve unexpectedly refrained from adjusting policy this week, World Bank Managing Director Sri Mulyani Indrawati said.
Indonesia’s anti-corruption commission searched the central bank’s premises through the night as part of a probe into the 2008 PT Bank Century bailout that has dogged President Susilo Bambang Yudhoyono’s second term.
Bank Indonesia Deputy Governor Budi Mulya became the latest target of probes into the 2008 PT Bank Century bailout that have threatened President Susilo Bambang Yudhoyono’s ability to fulfill his economic agenda.
World Bank President Jim Yong Kim said two senior executives will leave and others will get new responsibilities, part of a management shakeup 13 months after he took over the institution as he prepares a new global poverty-reduction strategy.
President Susilo Bambang Yudhoyono’s surprise choice of Agus Martowardojo to run Indonesia’s central bank met with mixed reactions, with some questioning his record as finance minister and others praising his banking experience.
Indonesia’s fuel-price increase this month will strengthen the rupiah and the trade balance as oil imports fall, while removing the incentive for smugglers to sell subsidized products abroad, Finance Minister Chatib Basri said.