Indonesia Tells Fed's Powell to Be More Aware of EM Impact
- More policy coordination needed by IMF members, Indrawati says
- Rupiah has slumped to two-decade low amid emerging-market rout
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Indonesia has a blunt message for the U.S. Federal Reserve’s Jerome Powell and other global financial chiefs gathering in Bali this week: be mindful of the effects of your policies on emerging economies.
Even though authorities in the Southeast Asian nation are taking the right steps to stabilize the currency and keep deficits on the current account and budget under control, Indonesia is still being punished by capital outflows triggered by Fed rate hikes, Finance Minister Sri Mulyani Indrawati said in an interview on Tuesday. Better policy coordination is needed among the International Monetary Fund’s 189 members to shield emerging economies, she said.