Bloomberg reported that Indonesian government said that the global credit crisis is slowing exports and may affect gross domestic product growth in Southeast Asia's biggest economy.

Mr Boediono governor of Bank Indonesia said that "The global liquidity squeeze may continue for the next 6 months to a year. Bank Indonesia and the government are increasing cooperation so we can limit the impact.''

Mr Mulyani Indrawati Indonesian finance minister said that financial turmoil may force Indonesia to revise its budget estimates for next year.

The central bank said that it will buy the currency if needed to boost the measure. Bank Indonesia has USD 58.36 billion of reserves, which are sufficient to meet 4.6 months of imports.

Indonesia's economic growth unexpectedly accelerated 6.4% in the second quarter as rising prices and demand for the nation's coal, palm oil and rubber pushed exports to a record. The government foresees growth slowing to 6.2% in 2008 from 6.3% a year earlier. The government expects its budget deficit will narrow to 1.3% of GDP this year, from an estimated 1.9%, as spending was reduced. That makes it less urgent for the state to sell more bonds this year.

Economic leaders across the world are trying to limit the spread of the fallout from the US. A record number of home foreclosures in the US forced Lehman Brothers Holdings Inc., into bankruptcy last month, while Fannie Mae, Freddie Mac and American International Group Inc. were taken over by the government.