KEEP EYES ON GLOBAL ECONOMIC TURBULENCE: ECONOMIC OBSERVER

Jakarta, Oct 1 (ANTARA) - The government has to keep an eye on further global economic turbulence after the United States government's proposal to obtain a bailout fund of US$700 billion was rejected by the U.S. Congress, economic observer Eric Sugandi said.

"The U.S. Congress' rejection of the bailout fund proposal has created heavier economic turbulences the impact of which is being felt by a number of countries in Asia and Europe," Eric Sugandi, economist of Standard Chartered, said here on Wednesday.

He said that the Indonesian market was not affected the impact of the rejection of the bailout fund proposal because the Indonesian market closed in the run up to the post-fasting month Idul Fitri holidays.

But it is feared that the impact would have effect on Indonesia in the future if the US government did not file a new proposal to obtain the bailout fund.

Sugandi also suggested that the government should keep an eye on the global economic turmoil because it was feared that fund managers would take anticipatory steps to avoid further losses.

Fund managers would likely transfer and invest their funds on commodity markets so that crude and coal as well gold would create further impact.

With fund managers entering the oil market, the crude price which at present was recorded at US$100 a barrel, would strengthen, he said.

He said that US Congress rejection would create worse economic turmoil as a number of regional stocks markets would be affected.