ID :
25160
Fri, 10/17/2008 - 21:19
Auther :
Shortlink :
http://m.oananews.org//node/25160
The shortlink copeid
ECONOMISTS SUPPORT GOVT'S STEPS IN ANTICIPATING IMPACT OF CRISIS
Jakarta, Oct 17 (ANTARA) - Indonesian economists have expressed support for the governemnt's steps in anticipating the impact of the current global financial crisis, saying the steps were correct.
Speaking to reportes after a meeting with President Susilo Bambang Yudhoyono at the latter's office here on Friday, they said the government had succeeded in preventing panic among the public by safeguarding the stability of the financial and banking sectors.
Among the economists attending the meeting were Umar Juoro, chairman of the board of directors of the Center for Information and Development Studies (CIDES), Fadhil, a researcher at the Institute for Development Economics and Finance (Indef), Chatib Basri, director of the University of Indonesia's Economics and Management Development Insitute, Raden Pardede, secretary general of the Indonesia Forum Foundation, Rudjito, head of organizational affairs of the Indonesian Economists Association, Hadi Soesastro, executive director of the Center for Strategic and International Studies, Ninsapti Triaswati, a member of the advisory board of the Indonesia Institute , Joyowinoto, senior director of the Brighton Institute and Bambang PS Brodjonegoro, dean of the Economics Faculty of the University of Indonesia.
Hadi Soesastro said the most important step to anticipate the impact of the crisis was safeguarding the stability of the financial and banking sectors.
"The government has already made the right efforts. It has created calm. A collapse of the financial sector is usualy caused by panic and distrust apart from outside influences," he said.
Soesatro hoped the government would continue to maintain the stability of the monetary sector while making efforts to move the real sector and attract investors.
"There will be sharp competition in capital collection in the world in the next two years as credits are down. So, we must compete. Investment must be increased," he said.
To that end, he called on the government to improve the country's investment climate and at the same time strengthen the domestic economy so that it could compete in attracting capital from abroad.
Soesastro and the other economists especially appreciated the issuanace of the government regulations in lieu of law (Perppus) which provided a guarantee for the people's deposits to prevent panic.
"The three Perppus are important and have already been issued. They gave peace of minds to the people so that there was no panic. That is the most importamt thing," Fadhil, another economist, said.
He hoped the government would take further correct steps in the future to support the growth of the real sector which was affected the most as a result of decreasing exports to Europe and the United States.
He also hoped the bank interest rate could be made more competitive to increase liquidity in the market.
The economists also called on the government to remain alert towards further developments in the crisis and be ready to take short-term, medium-term and long-term steps.
Umar Juoro meanwhile said the financial sector in Indonesia cannot go by itself but must also support the real sector.
With such a policy, he said, the country's economic fundamentals would be strong enough to weather upheavals.
"What we are emphasizing is what the government should make banks continue to play an optimum role in financing the real sector," he said.
Soesastro said it was not impossible that the global crisis would worsen if anohter big company in the US collapsed.
"The recession will continue for three quarters next year, according to US economists. We do not know what impact this will have on Indonesia. There is no recipe to deal with it and therefore we must remain alert," he said.
The economists said to meet the worsening economic conditions in the US, the economy in East Asia including in Southeast Asian countries, China, Japan and South Korea must be strengthened.
President Yudhoyono at the meeting was flancked by acting coordinating minister for the economy Sri Mulyani, Bank Indonesia governor Boediono and Minister/State Seretary Hatta Radjasa.
***2***
Speaking to reportes after a meeting with President Susilo Bambang Yudhoyono at the latter's office here on Friday, they said the government had succeeded in preventing panic among the public by safeguarding the stability of the financial and banking sectors.
Among the economists attending the meeting were Umar Juoro, chairman of the board of directors of the Center for Information and Development Studies (CIDES), Fadhil, a researcher at the Institute for Development Economics and Finance (Indef), Chatib Basri, director of the University of Indonesia's Economics and Management Development Insitute, Raden Pardede, secretary general of the Indonesia Forum Foundation, Rudjito, head of organizational affairs of the Indonesian Economists Association, Hadi Soesastro, executive director of the Center for Strategic and International Studies, Ninsapti Triaswati, a member of the advisory board of the Indonesia Institute , Joyowinoto, senior director of the Brighton Institute and Bambang PS Brodjonegoro, dean of the Economics Faculty of the University of Indonesia.
Hadi Soesastro said the most important step to anticipate the impact of the crisis was safeguarding the stability of the financial and banking sectors.
"The government has already made the right efforts. It has created calm. A collapse of the financial sector is usualy caused by panic and distrust apart from outside influences," he said.
Soesatro hoped the government would continue to maintain the stability of the monetary sector while making efforts to move the real sector and attract investors.
"There will be sharp competition in capital collection in the world in the next two years as credits are down. So, we must compete. Investment must be increased," he said.
To that end, he called on the government to improve the country's investment climate and at the same time strengthen the domestic economy so that it could compete in attracting capital from abroad.
Soesastro and the other economists especially appreciated the issuanace of the government regulations in lieu of law (Perppus) which provided a guarantee for the people's deposits to prevent panic.
"The three Perppus are important and have already been issued. They gave peace of minds to the people so that there was no panic. That is the most importamt thing," Fadhil, another economist, said.
He hoped the government would take further correct steps in the future to support the growth of the real sector which was affected the most as a result of decreasing exports to Europe and the United States.
He also hoped the bank interest rate could be made more competitive to increase liquidity in the market.
The economists also called on the government to remain alert towards further developments in the crisis and be ready to take short-term, medium-term and long-term steps.
Umar Juoro meanwhile said the financial sector in Indonesia cannot go by itself but must also support the real sector.
With such a policy, he said, the country's economic fundamentals would be strong enough to weather upheavals.
"What we are emphasizing is what the government should make banks continue to play an optimum role in financing the real sector," he said.
Soesastro said it was not impossible that the global crisis would worsen if anohter big company in the US collapsed.
"The recession will continue for three quarters next year, according to US economists. We do not know what impact this will have on Indonesia. There is no recipe to deal with it and therefore we must remain alert," he said.
The economists said to meet the worsening economic conditions in the US, the economy in East Asia including in Southeast Asian countries, China, Japan and South Korea must be strengthened.
President Yudhoyono at the meeting was flancked by acting coordinating minister for the economy Sri Mulyani, Bank Indonesia governor Boediono and Minister/State Seretary Hatta Radjasa.
***2***
