Economic Problems, Solutions & Actions
A lot of people know what's wrong with our economy. Everybody could answer that. Many people could also give suggestions on what should be done. But we need someone who dare to make decisions.
Most speakers in seminars eloquently explain what's wrong with the system, consumed most of the time available, but spending only few minutes to discuss the best solutions. Tons of paper have been written on the country's economic problem, but very few explain in details on what to do with risk factors. Worse, our experts have drafted solutions and action plans, but no decision is made.
In the last few weeks, rupiah lost significantly its value. Jakarta's composite index (IHSG) has dropped 17% since May 22 at 1,507 to this hour of 1,252. Fed's signal to keep raising interest rate to curb inflation is considered the main reason behind this.
According to trading data available at JSX, foreign investors mainly on sell position since the second week of May. Out of 17 trading days since then, for example, net sell of Indonesian stocks by foreign investors totalled Rp803 billion. Foreign investors on net buy only in five trading days since then. With thin trading, this so-called hot money could change things for good and bad. Easy come, easy go!
We know that we need more cool money flowing into the economy either domestic-source or foreign direct investment. We have drafted action plans to make that happen, create more jobs, boost export, domestic demand, improve salaries, and so forth. What we need is leadership. Leaders should make decisions, not just quantity-wise but more quality decisions. As a leader, you can't ask approval from your constituents all the time before making decisions. People will make their judgement on election day, that's why we changed our political system. Even the best decisions will never make everybody satisfied.
We don't need our leader's daily comment about the ups and downs of stock market or rupiah. We need decisions to pull in more cool money.
READ MORE!!!
Most speakers in seminars eloquently explain what's wrong with the system, consumed most of the time available, but spending only few minutes to discuss the best solutions. Tons of paper have been written on the country's economic problem, but very few explain in details on what to do with risk factors. Worse, our experts have drafted solutions and action plans, but no decision is made.
In the last few weeks, rupiah lost significantly its value. Jakarta's composite index (IHSG) has dropped 17% since May 22 at 1,507 to this hour of 1,252. Fed's signal to keep raising interest rate to curb inflation is considered the main reason behind this.
According to trading data available at JSX, foreign investors mainly on sell position since the second week of May. Out of 17 trading days since then, for example, net sell of Indonesian stocks by foreign investors totalled Rp803 billion. Foreign investors on net buy only in five trading days since then. With thin trading, this so-called hot money could change things for good and bad. Easy come, easy go!
We know that we need more cool money flowing into the economy either domestic-source or foreign direct investment. We have drafted action plans to make that happen, create more jobs, boost export, domestic demand, improve salaries, and so forth. What we need is leadership. Leaders should make decisions, not just quantity-wise but more quality decisions. As a leader, you can't ask approval from your constituents all the time before making decisions. People will make their judgement on election day, that's why we changed our political system. Even the best decisions will never make everybody satisfied.
We don't need our leader's daily comment about the ups and downs of stock market or rupiah. We need decisions to pull in more cool money.
READ MORE!!!
posted by yosef at 11:47 AM
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