TEMPO Interactive, 3 December 2009
The Finance Minister Sri Mulyani Indrawati is asking investors to remain cautious when facing the global economy, because its consolidation will not start until next year up to 2011. “So, take care,” said Sri Mulyani when opening the “Investor Summit and Capital Market Expo 2009” in Jakarta yesterday.
According to Sri Mulyani, the global financial crisis in 2008 forced every nation to perform rescue acts through various fiscal and monetary policies.
For fiscal policies, every government poured out bailout funds, like the Rp73.3 trillion from the Indonesian government to increase buying power and to push economic growth.
In the monetary sector, the Central Bank controlled low inflation, relaxed key interest rate and printed money to fill any financial system liquidity shortages.
As a result, there is now an abundance of liquidity in the world.
Now, when the financial crisis has subsided on account of the global relief efforts, various nations will readjust their policies.
“Investors should also make some readjustments,” she said.”So, don’t expect the present agreeable condition, like abundance of funds, low interest rate and low inflation, to last forever. “
Sri Mulyani said she expected investors and entrepreneurs to exercise caution and ensure transparency and consistency in running their businesses. She allows market players to obtain maximum profits as long as this doesn’t disrupt the whole system.
Nevertheless, she said she hoped investors stayed optimistic on seeing Indonesia’s future potential economic growth. The government, she said, will keep on trying to maintain the public’s and investors’ trust.
For next year budget, the government is targeting 5.5% economic growth and 5% inflation. The Rupiah exchange rate is targeted at Rp10,000 against the US Dollar US$ and the nation’s oil price US$65 per barrel.
The Central Bank caretaker Governor, Darmin Nasution, said that economic growth will improve next year. Besides the potential crude oil price increase, non oil and gas prices will also increase next year.
Source: TEMPO Interactive
The Finance Minister Sri Mulyani Indrawati is asking investors to remain cautious when facing the global economy, because its consolidation will not start until next year up to 2011. “So, take care,” said Sri Mulyani when opening the “Investor Summit and Capital Market Expo 2009” in Jakarta yesterday.
According to Sri Mulyani, the global financial crisis in 2008 forced every nation to perform rescue acts through various fiscal and monetary policies.
For fiscal policies, every government poured out bailout funds, like the Rp73.3 trillion from the Indonesian government to increase buying power and to push economic growth.
In the monetary sector, the Central Bank controlled low inflation, relaxed key interest rate and printed money to fill any financial system liquidity shortages.
As a result, there is now an abundance of liquidity in the world.
Now, when the financial crisis has subsided on account of the global relief efforts, various nations will readjust their policies.
“Investors should also make some readjustments,” she said.”So, don’t expect the present agreeable condition, like abundance of funds, low interest rate and low inflation, to last forever. “
Sri Mulyani said she expected investors and entrepreneurs to exercise caution and ensure transparency and consistency in running their businesses. She allows market players to obtain maximum profits as long as this doesn’t disrupt the whole system.
Nevertheless, she said she hoped investors stayed optimistic on seeing Indonesia’s future potential economic growth. The government, she said, will keep on trying to maintain the public’s and investors’ trust.
For next year budget, the government is targeting 5.5% economic growth and 5% inflation. The Rupiah exchange rate is targeted at Rp10,000 against the US Dollar US$ and the nation’s oil price US$65 per barrel.
The Central Bank caretaker Governor, Darmin Nasution, said that economic growth will improve next year. Besides the potential crude oil price increase, non oil and gas prices will also increase next year.
Source: TEMPO Interactive
