Investors currently now not weigh Europe, the u. s., and Japan because the strongest economies within the world. They checked out developing countries instead, like China, India, and Indonesia as new economic powers.
This was conveyed by economist Faisal Basri throughout the 2012 economic outlook of Indonesian monetary Services Association (APPI), in Jakarta, on Tuesday.
Faisal said the recession and double depression, significantly within the U.S. and Europe, are already seen on the horizon. If this can be not reckoned, Indonesia can be affected. "The improving inflation is that the main asset to take care of the economy," he said.
Indonesia’s alternative asset is that the exchange rate that's still sound compared to previous years. The rupiah’s rate against the US dollar, in line with Faisal, remains much better than in 2008. within the crisis of 2008, rupiah surpassed the amount of Rp12,000 against US dollar, whereas currently it's still underneath Rp9,300 and even rose to Rp8,500.It is to not mention the flow of foreign funds or hot cash.
Although these days the number of hot cash is large, Faisal said, it's currently not the maximum amount because it was in 2008. "Now the ratio of hot cash and direct investment is 1:4, thus if hot cash is lost, the foreign exchange reserves won't drop," he said.Unfortunately, the present government has no social safety internet because it did in 2008. however amid the risks of the worldwide crisis these days, the govt. must offer a social safety internet. "So way the home is still halfhearted in discussing the social security system," he said.Another think about favor of Indonesia amid this international economic downturn is that the most export destination, China, isn't experiencing the economic slowdown. therefore the exports are still ongoing.