House wants govt. to summon foreign investment managers

The Jakarta Post   |  Tue, 10/14/2008 8:34 PM  |  Headlines

Some members of the House of Representatives have demanded the government to summon financial firms managing foreign capital investments here to gain insight on why they dumped Indonesian assets last week.

Member of House commission overseeing financial affairs, Melchias Markus Mekeng, argued that there was no reason to abandon Indonesian stocks and bonds the fundamentals of the country’s economy were in a solid state.

“The government have said yes (to the House demand),” Melchias said after a closed-door meeting with government officials at the House Tuesday night.

He said capital market watchdog, Bapepam-LK, must demand the firms to explain themselves because their actions last week could seriously damage investors’ confidence on Indonesian assets.

According to Melchias, foreign investment managers that must be summoned include Standard Chartered, JP Morgan, Merrill Lynch and Kim Eng.

“Don’t let us bleed while they dumped the assets as they please. The government must pressure them,” he said as quoted by Tempointeraktif.com. (and)
 
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Keith harding (not verified) — Tue, 10/21/2008 - 2:19pm

TO : MP, the issue is not with Governments, it's about traders taking a flight to safety. The Fed sure they created this and lending facilities that were not managed but it does not change the fact why someone would swap stocks for Gold or Forex to recoup lost $$$. trust me the traders know far better than any government.

Iain (not verified) — Thu, 10/16/2008 - 6:09pm

This is just a pathetic stunt so the politicians can get their faces on TV looking like they are doing something and then blame the foreigners. Of course... foreigners are to blame for all of Indonesia's problems.

MP (not verified) — Thu, 10/16/2008 - 1:42pm

Keith, lets face it, it's all a scam isn't it?

The West printed USD, GBP, etc and bought up investment in artificially depressed, 1998 Far Eastern stocks. Now the western 'Wizz Kids' are reaping the whirlwind and take down everyone with it.

But can you honestly say that anyone has been held accountable for doing this....Bush,Greenspan, Bernake, Paulson,....??? None!

Remember the Far Eastern leaders who were lynched after the 1998 crash?

Peng Am At (not verified) — Thu, 10/16/2008 - 10:20am

The energy should be saved for something more important & priority for the country development & betterment, rather than criticizing others in this free market.
It will be better if everyone play according to their strength & skill to contribute without scarying off others who may bring other investment opportunities next time around.
Be fair & be professional, create a good level of playing field without discriminating.

Keith harding (not verified) — Wed, 10/15/2008 - 7:44am

I think its very obvious why they would dump stocks. The entire world was having a meltdown in which Indonesia is an emerging market in which these kind of markets take a beating. Traders will have taken a flight to safety and placed funds in Gold, Bonds, Forex rather than risk it in stocks. There was no country exempt from this downward spiral.To think Indonesia is immune shows the lack of knowledge of the situation and an inquiry should then commence on the legislators who don't know what they are talking about which means can they really do their job?

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