Log In
Username

Password

Remember me

Article image   ECOBIZVOL ZONE

 

Pre- wave of Crisis Has Hit Indonesia





Indonesia, 11/10


 


The Government said that Indonesia is far from crisis. The panic selling by the investor has been causing the Stock Market Exchange rate drop to more than 10% in a day. Later, Central Bank decided to halt it until unknown time. Indonesian President, Susilo Bambang Yudhoyono asked community to stop panic if Indonesia had not entered crisis. The World stock market fall rate didn’t describe the real situation of Indonesian economic. Indonesia Central Bank governor, Sri Mulyati was also sounding the same.


 


President even ordered the authority to investigate the problem and arrest those “naughty” investors which causing the panic selling on the stock market. One day after, there was an internal report said that Bakrie Group had some fund in the United States bank and company. Those bank and company had deal with subprime mortgage problem. Bakrie Group liquidation was in questioned. But a days later, Bakrie said through its press release that their liquidation is still good and public should not worry anything about it. Due to the problem, Bakrie enlisted stock has been suspended until now.


 


The Stock exchange is remained close until Friday to stop the market exchange rate to drop deeper. There is still uncertain that the Stock market will be reopened on Monday.


 


PLANNED TO OPEN ON FRIDAY


Indonesia Stock exchange was planning to open on Friday but cancel. The cancelation was to anticipate the stock exchange rate to drop deeper because the world market turned out to be nightmare. World market dropped to more than 25%. Asia markets were also dragged with them. Eslandia investment bank, Kauping has a trouble with its liquidation and sought for help to enclose its bad debt. Russia and UK are among the countries which will help them solving their liquidation.


 


In Japan reported that Yamato Life insurance firm declared bancropt and sought for banckruptcy protection from government after owning more than US$ 2,7 billion of bad debt. This is causing the Nikkei stock exchange to drop more than 10% in a day of transaction. Another property firm based in New York was also declared for bancropt in the same day.


 


In Indonesia, few person I meet and interview said that they are worried if many of Indonesian banks will declare the same thing in the next few months. Eventough, the government has ensured that Indonesia is far from crisis but there is no guarantee that Indonesia will not fall into the same crisis. Indonesia to American Dollar currency has also affected with the global market financial crisis. It has been started about 3 weeks ago since the Lehman Brothers declared bancropt.


Now 1 USD = +/- Rp. 10,000.


 


Indonesia government has dopped tax to 0 for few import consumer products. Government said that they will maintain consumer purchase power to a certain point. Interest rate point is quite high in Indonesia. Bank Indonesia has rated to more than 9% pa. It’s mean that credit loan will up to 11% to 12% of interest rate. For illustration, now if you had money in Indonesia currency and put in the bank deposit, you will earn up more than 9% of interest rate par annum.


It’s sound better saving rather than investing your money into any kind of business. Your money will grow faster and this is not advertising. The demand for American dollar is seem growing to fast due to many of local and foreign firms operational have to pay the maturity debt in American dollar.  


 


In few months ahead, if the crisis continues, Asia will be hit hardly by the wave of global financial crisis.  


 


China: world is still hoping for China to assist redeeming the global financial crisis. This year, China economic growth to more than 9, 7% meanwhile others are below that.




Tags: China , American , Kauppong , Eslandic , Bank Indonesia , Interest Rate , Exchange Rate
Rate It:
digg it

Post a Comment

Name

Website (optional)

Comment



Average Rating: No Rating
Region: Indonesia
Views: 289
     

More from ECOBIZVOL ZONE

More from this Reporter

More from this Region

More from Similar Tags

Help improve GroundReport




v 2.4 build: 228
0.3128