Indonesia, the biggest Southeast Asia economy, has adopted a series of measures to offset the impact of the global market crisis.
In a bid restore the confidence in the stock market, the country's capital market watchdog, or Bapepam, plans to relax its regulation and allows listed firms to buy back shares without shareholder approval, the acting chairman of Bapepam Darmin Nasution has said.
Under the current rules, the listed firms must seek shareholder approval for a buyback and an extraordinary meeting must be notified one month in advance.
The stock market has suspended trading since Wednesday after the Jakarta Composite Index slumped to more than 10 percent, then skidded to more than 20 percent this week, causing panic selling, amid the plunge of global stock market in the United States, Europe and Asia.
The listed-state owned companies have a total market value of more than 30 billion U.S. dollars, or about 30 percent of the total market capitalization in the Indonesia stock exchange.
A legal action has also been taken to protect the market from speculation, as the president asked the Indonesia's Capital Market and Financial Institutions Supervisory Agency and the stock exchange to jointly protect the exchange market and to bring those allegedly involve in act which could be categorized as criminal to justice.
The country's central bank on Tuesday for the six time this year raised its benchmark interest rate by 25 basis points to 9.5 percent to slow inflation.
Indonesia has revised down its economic growth target from 6.4 percent to 6 percent.
To achieve the 6 percent economic growth target, the country would boost export and explore domestic market, Indonesian Trade Minister Mari Elka Pangestu said.
In a bid to boost the real estate sector, the government plans to accelerate budget disbursement for development projects in the last three months of 2008.
Source: Xinhua
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