UPDATE 1-Indonesia c.bank ready to mitigate market turmoil JAKARTA, Sept 16 (Reuters) - Indonesia's central bank is ready to take necessary steps to mitigate the turmoil in domestic financial markets, Bank Indonesia Governor Boediono said on Tuesday.
Indonesian markets were hit on Tuesday amid concerns Wall Street's upheaval will cause lasting damage to the global economy, after Lehman Brothers filed for bankruptcy, Bank of America agreed to buy Merrill Lynch and the Federal Reserve expanded its emergency liquidity provisions. "This is a global situation. The turbulence in the global financial market is because of Lehman and others," Boediono told reporters. "It is as if we are on a boat amidst stormy seas. We have to stay calm, controlling the boat as best as we can until the swings subside and we can see a better direction. The point is that our boat is in a good shape." Indonesian stocks plunged as much as 7.4 percent to 1,592.2 points in early trade before recovering slightly to end the morning session at 1,641.3 points. "Whenever needed we will take steps, right now we are closely monitoring the situation," Boediono said, when asked if the central bank would take special steps to mitigate the current turmoil. Indonesian President Susilo Bambang Yudhoyono also urged calm, saying the country's "fundamentals are in a good shape". "If we respond to this correctly, remain calm, with measured policy, I'm confident that we can manage any kind of economic turbulence -- global or regional," Yudhoyono told a cabinet meeting.
