Economic crisis in Europe trigger to Indonesian Foreign Capital

Economic crisis that occurred in some European countries should be used as an opportunity for foreign capital entry into the country. "Do not just be seen as a threat, but as an investment opportunity," said Director of Institute for Economic and Community (LPEM) Universitas Indonesia (UI), in Jakata Chatib Basri, Thursday (19 / 3).

He said the crisis that occurred in some European countries such as Greece, Portugal, Italy, Spain and Ireland make investors look for a new container to invest their capital. "Imagine if they had a capital investors Rp 100 trillion, and 10% interest. Meaning of the year should have 10 trillion profit. Within a month around Rp 900 billion. When calculated per day are in the range of Rp 30 billion. If there is no investment, the money they lost Rp 30 billion per day, "he explained.

According Chatib, investors will selectively choose which will be planted state capital. "If the Americans choose, the stakes will be greater because the economy there has not recovered," he said.

That way, more Chatib, means open opportunity to invest into emerging markets such as Indonesia, Brazil, Russia, India, China, Thailand, and Malaysia. "Thailand and Malaysia, there are political dynamics, the choice is Brazil, Indonesia, China, and India," he said.

According to Chatib, the flow of incoming funds will be more inclined to advance the capital market. However, this is an initial indicator to the foreign direct investment (FDI).

"People would put in there first to see certain things, then he headed foreign direct investment. Always ahead of trend investment portfolio foreign direct investment," he said.

Nevertheless, Chatib also reminded to stay alert because the second half of this global liquidity will be tight enough. Americans are likely to raise interest rates, so the reversal of capital may occur.

As is known, the Investment Coordinating Board (BKPM) himself noted that investment growth in 2010 could reach 15% or reach around Rp 160 trillion.

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