To the Rescue

As of yesterday (according to BNP)..

• In Japan, a package of emerging measures to stabilise the financial markets should be announced later this week. According to press speculation, the plan will include a provision for injecting as much as JPY10tr into banks. The government is also likely to resume stock purchases through the Banks’ Shareholdings Purchase Corp.
• In the US, the Fed is reportedly considering reducing or even eliminating reserve requirements.
• The Belgian government will inject EUR3.5bn into KBC in order to strengthen its capital ratio. The injection will occur via non-transferable non-voting shares.
• In Germany, according to reports, IKB, HSH Nordbank AG and WestLB AG are preparing to apply for aid under the government’s rescue package.
• The IMF reached a ‘tentative’ agreement with Ukraine to lend the country USD16.5bn under a 24-month stand-by arrangement. The agreement follows a USD2.1bn two-year facility granted to Iceland.

What about Indonesia? I think it’s quite pro-active. Some realistic moves:

• Export guarantee
• FX Reserve control (from state owned companies)
• Holding up SUN
• FX Swap from other Central Banks (BoJ, BoC, BoK)
• Reduce the gasoline price (most likely)
• No CPO Export tax
• Tackling illegal import
• Infrastructure development (ini mah janji janji dari dahulu)

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