Fed's rate pause is an 'opportunity' for Indonesia to spur growth, says its finance minister

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The U.S. central bank's pause in interest rate hikes is a relief for many emerging economies, and represents an opportunity for Indonesia to accelerate growth, the Asian country's finance minister told CNBC.

The Federal Reserve's pause in interest rate hikes is a relief for many emerging economies, and represents an opportunity for Indonesia to accelerate growth, the Asian country's finance minister told CNBC on Monday.

"Because this pause in increasing rates is also showing that the global economy environment is not good. So we really have to be very careful in seeing this signal," she added. The halt in rate hikes — and the Fed signalling in January that it will be"patient" with monetary policy — is"relieving pressure" for many emerging economies, Sri Mulyani said. That's especially welcome for Indonesia, Southeast Asia's largest economy, as it suffers from capital outflows, she said.Emerging economies as a whole have experienced large outflows of capital, triggered by higher interest rates in the U.S., as investors search for better yields stateside.

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