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Text your say: Fears of a looming economic crisis
Your comments on the weakening rupiah, soaring prices of commodities and the governmentâs efforts to regain investorsâ trust in the rupiah:SMSThe Indonesian economy will not improve anytime soon, as long as the ineptitude of the current administration continues
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our comments on the weakening rupiah, soaring prices of commodities and the government's efforts to regain investors' trust in the rupiah:
SMS
The Indonesian economy will not improve anytime soon, as long as the ineptitude of the current administration continues. For example, the requirement for fluency in Indonesian for foreigners is quite flawed, in its very basic logic.
On the one hand we want foreign investment to flow in, but on the other hand we say that the investors cannot take care of their money because they don't speak Indonesian.
That such a regulation was even passed shows a total lack of competence and understanding of the world we live in. Instead of retreating inward to narrow nationalism, we should embrace the world. Globalization is unavoidable. Everyone should learn English.
Hing
Government should control foreign employees to prevent dependency on skilled human resources and improve local workers' productivity and skills.
Zainal
The current situation is different from the 1998 financial crisis. Most emerging markets have higher foreign exchange (forex) reserves that act as a buffer against external shock. Debt is mostly domestic, while in 1998 it was largely US dollar denominated. However, countries with majority dollar-denominated debts, current account deficits, low domestic liquidity and high inflation such as Indonesia will be most vulnerable.
Andy Kai
Rp 14,100 per dollar now. Anyone care to wager when the rupiah will go past Rp 15,000? This currency is now once again one of the sickest patients in the whole hospital ward. Good to see the ringgit made it into the intensive care ward even earlier than the rupiah this time though. Shades of 1998 all over the place these days.
The world economy has been very sick since 2008. In my opinion, it never really recovered from the global financial crash. For the past six years, China appeared to be growing fast, but this was fueled by a massive debt binge, which is no longer sustainable. The collapse of commodity prices since 2011 is a sign that China can no longer be relied on as the solution to Indonesia's problems. Indonesia has little to offer apart from commodities, so I think it is in for a rough stretch.
Lasem Benny
While Bank Indonesia is buying Treasury bonds and shifted liquidity to longer repayments, I recommend that Indonesians buy Mercedes and BMWs, because these cars devalue less quickly than the rupiah.
Sorry folks, but I am going to make some big money tonight staying up late to play on the New York Stock Exchange (NYSE). I have been shorting the rupiah for months as well as stocks and have been making a killing. Enjoy the ride. Don't forget the Xanax.
SD
China has turned its focus to consumer spending. It has been an export-oriented economy since the very beginning, importing raw materials from countries like Indonesia and Brazil.
Simba
China's stock composite is also a mess. All the gains were made in 2014 without any shown fundamentals. It was a massive bubble, that's clear from the chart.
Abdul Khalik
Not to forget, all this is happening at a time when the US dollar itself is weakening against other currencies, such as the euro and yen. Where to go from here? Gold? bitcoin?
Marken
