Good Momentum For Indonesia’s Economy
It is now the first time since the 1998 crisis, the Indonesian economy gets the best momentum into the path of sustainable growth accelerated towards its maximum potential.
It never happened before where so many positive factors present simultaneously. Composite stock price index has crossed 3,500. Rupiah rose slowly and has been long enough to survive in the vicinity of Rp 8,900 per U.S. dollar. State securities (SBN) increasingly attractive than Bank Indonesia Certificates (SBI). Foreign direct investment (FDI) rose sharply. Meanwhile, exports began to accelerate until it reaches the highest monthly record in August 2010.
The inflation rate eased after a five-month consecutive increase. If it remains below 6 percent like last month, the threat of rising interest rates can temporarily be ignored. In addition to that, we hope that there are effective measures to reduce lending rates.
The signs of steady improvement is clearly seen from the increase in credit rating (credit rating) of Indonesia. Rating Agency S & P’s has increased RI’s rating to BB after the tendency of improvement during more than three years without any serious fluctuations . If the improvement continues, it is probable that Indonesia’s ranking will increase to BB,next year, just one step towards investment grade status.
Our competitiveness ranking also rose dramatically, both according to the latest version of The Global Competitiveness Report and World Competitiveness Yearbook. It must also be acknowledged that this huge improvement is also due to the deterioration of European countries’ economies that had always been above Indonesia.
Increased investment attractiveness is also visible from the investment flows from developed countries. In recent years, they had pulled out because of the increasingly complex regulatory environment and increase uncertainty. However, they gradually go back, especially in the mining sector, to offset the penetration of China and some new-comer countries of in recent years.
With the economy is in a very good shape, Indonesia should be moving more dynamically. One key to improvement is the acceleration of infrastructure development. Fund is sufficient , even relatively abundant.
Let’s use the momentum!
Credit: Faisal Basri ” Momentum”