By Timur Abimanyu, SH.

MH

The Washington Post

HOW TO ERADICATE LEVEL REDUCTION ECONOMIC

AND ECONOMIC RISK ALERT THREE
LATER IN THE YEAR 2011 ?

Foreign Funds Exit RI Rp 5.40 Trillion

Thursday, November 18, 2010 | 15:08 pm

JAKARTA, Report of open market operations (OMO) of Bank Indonesia (BI) for 8 to 12 November
2010 shows the outflows (money out) foreign return on financial assets rupiah continues to Rp 5.40
trillion, mainly in SBI (Bank Indonesia Certificates) equal to Rp 8.10 trillion due to the high SBI
maturity.Head of Public Relations Bureau BI Difi A Johansyah explain the decline, the share of foreign
SBI down from 31.67 percent to 29.57 percent.

"In addition, there was net selling of foreign stocks amounting to Rp 48.2 billion, with foreign stock
transactions reached 28.77 percent of the total transactions during the reporting week," said Difi.
In contrast, foreign ownership in other financial market instruments, namely SUN (Government
Securities) increased by Rp 2.75 trillion to increase the share of foreign securities from 30.37 percent to
30.75 percent. "The stability of the financial system relatively well maintained, although there is
negative sentiment in global financial markets, among others, influenced by concerns about the
recurrence of the European crisis, "said Difi.Speculation that China will raise interest rates, as well as the
U.S. credit rating lowered by China Dagong Credit Rating of AA to A + (source: Bloomberg), is also a
concern of investors. "This development has resulted in foreign investors tend to wait and see the action
and the continuing foreign outflow. Meanwhile, the banking intermediary during the reporting week
declined thin. By tribunnews.

Foreign Funds in Indonesia Continues Decline

Wednesday, December 1, 2010 | 14:24 pm

JAKARTA, Indonesia Bank noted, domestic portfolios held by foreign investors during last
week of November continue to fall because of increased risk due to negative sentiment from
the fears of Europe's debt crisis, rumors of Chinese interest rate hikes, and political
conditions of Korea. Head of Public Relations Bureau BI Difi A Johansyah in Jakarta,
Wednesday (01/12/2010), said that the outflow of foreign funds is also affected by the act of
adjusting the position of the portfolio by the end of the year by foreign investors.

The portion of foreign ownership in Government Securities (SBN) dropped from 29.5
percent to 29.2 percent and SBI fell from 30.0 percent to 28.8 persen.Selain, during
November, the placement of foreign funds in rupiah fell to Rp 13 instruments , 7 trillion and
the largest on Bank Indonesia Certificates (SBI). Factors decreasing the placement of
foreign funds in SBI is also caused by the limited supply of SBI on the secondary market so
that the daily average volume of SBI in the secondary market in the last week of November
fell from Rp 1 trillion (previous week) to Rp 0.6 trillion. In the last week of November, less
than the liquidity needs additional liquidity that monetary operations experienced a net
contraction. Additional expansion of liquidity from the government account is greater than
the needs caused by net monetary operations contracted Rp 7.6 triliun.Kebutuhan end of the
year caused liquidity to market participants to reduce placements in long-term instruments
so that the position of one-month term deposit down.

Beware of Three Economic Risk in 2011!

Thursday, December 23, 2010 | 18:30 pm

JAKARTA, Bank Indonesia (BI) rate, there are three risks that could cause internal and
external imbalances in the economy of Indonesia. Therefore, the Director of Economic
Research and Monetary Policy Bank Perry Warjiyo third assess that risk needs to be aware
early on. The third risk is, first, the risk of global economic imbalances in developed
countries where economic slowdown and emerging market moderation acceleration which
can lead to declining external demand on the export of emerging markets, including
Indonesian.

Secondly, the swift flow of foreign capital (capital inflow) and the issue of war exchange,
where kebijakanquantitative easing second phase of the U.S. will result in the continued
flow of heavy capital inflow and exchange rate appreciation pressures emerging markets,
including the rupiah. While the third risk, strong domestic demand and inflationary
pressures. According to Perry, the increase in domestic demand to drive growth in emerging
markets including Indonesia, will encourage increased inflationary pressures, especially
where supply-side response is not accelerated as fast as the demand side. "A number of risk
need to watch out for internal and external balance for sustainable improvement of national
economy," he said in the 2011 Economic Projections show INDEF, Thursday (12/23/2010).
However, Perry is optimistic the economy 2010 and 2011 quite well in spite of considerable
challenges, such as inflation, the flow of foreign funds, and how to enhance the capacity of
the economy. By Irma Yani.

===================
Illustration By Timur Abimanyu, SH.MH.
If the State of Indonesia in facing the economy In 2011, it must be prepared to face all the
problems mentioned above, by holding the increase in the Field of Law, especially in terms
of legal certainty, a small increase in the economic sector, Law Enforcement of the
Corruption Eradication, Job opportunities are as wide as possible to minimize the level of
unemployment in Indonesia. Economic policies on these internal factors that influence the
external factors and result in foreign investors reluctant to invest, because they feel safe to
invest in Indonesia and this guarantee shall be increased by the Government of Indonesia.

Referency :
http://www.yahoo.com
http://www.KOMPAS.com
http://www.tribunnews.com
http://wwwdetik.com
http://id.wikipedia.org
http://www.CyberNews.com
http://www.Antara.com
http://www.RepublikaOnline.com
http://www.muradi.wordpress.com
http://www.google.com
http://www.CNN.com
http://www.washingtonpost.com
http://www.Liputan6.com