Riffrag Business & Finance Report

JAKARTA – Not too draft law ratifying the Financial Sector Safety Net (JPSK) and Financial Sector Authority (OJK), making the government will soon submit the draft Exemption JPSK back to the President. Exemption filing this as a legal umbrella to anticipate the threat of hurricane crisis.

“We’re with BI are both seen JPSK should become law. But if the Act is still needed time, go to the House, we are prepared if necessary to Perppu JPSK. If it’s the worst thing happens, we ask Perppu draft to the president,” said Minister of Finance Agus Martowardojo in the Office of Coordinating Minister for Economic Affairs, Jalan Banteng Square, Jakarta, Monday (06/21/2010) night.

In addition to issuing Perpu, another precaution is the Government and the Bank have agreed to carry out the protocol for the control of the crisis will be run, including an early warning signal.

“The draft Law JPSJ enter. If there is anything, we must ask Perppu. Is important we have put forward a plan. Accepted or not that’s the process further,” he added.

Later, the Ministry of Finance and Bank Indonesia will conduct deeper discussions related to the discussion OJK, where the BI is still concerned about the overlap in supervision.

“The Ministry of Finance will have a special bilateral meeting with Bill OJK BI discuss in depth,” he said

Sri Mulyani Indrawati’s resignation from the post of Finance Minister in late May and then change the constellation of the economic team of the United Indonesia Cabinet (KiB), vol II.

President SBY leaving only two economists as a minister in the fields of economy, namely the Minister of Trade Mari Pangestu and Minister of PPN / Head of Bappenas Armida Alisjahbana. While the rest come from political parties, businessmen and bankers.

Then, to strengthen the economic team, President SBY also created the Committee on National Economy (KEN), the majority of its members are entrepreneurs. Presumably, with the election of officers among businessmen as public policy makers – especially in the economic field – will provide welfare for the community. As a result, if they successfully manage a business, will also succeed in managing the country’s economy.

Do not they have successfully managed to improve the life of him so it will also improve the life of their nation. Paul Krugman, Nobel Prize-winning economist Economics 2008, explained how dangerous if the economic policies of a country handed over to entrepreneurs.

In a treatise titled Country Not Companies (Margin of the Left: 2010), he explained the difference in character between an economist and an entrepreneur in the view the economy. According to him, thinking that forms a reliable businessman is not the habit of thinking an economist. Furthermore, he says, a president who made money USD1 billion is not the right person to be held opinions about the economy amounted to $ 6 trillion.

Why? Krugman affirmed, because the state was not a large company. Managing the country’s economy certainly is much more complicated than managing a business enterprise. In the economy of a country, there are thousands of different business lines and not infrequently even conflicting with each other.

They are united only because it is located in the same country boundaries. This is different from the economics firm, despite having business lines vary, but tend to be united by one main theme. This means that the business could not match the complexity of the national economic system. Fundamentally, Krugman says, the differences between business strategy with the economic analysis is the underlying systems.

Business activity is essentially an open system, while the national economy is a closed system. Entrepreneurs, says Krugman, is not accustomed to thinking about a closed system, while economists vice versa.

In open systems, competition is encouraged in order to achieve maximum profits. No matter gains by means losses for others. For example, tariffs product out of cocoa, palm oil or coal is low on one side of the business profitable plantations or coal entrepreneurs. However, the policy was actually turned off the downstream industries that difficulty in obtaining raw materials.

Now, in a closed system, exports had decreased to revive the industry. Another example is the success in one business line at a company, whether in financial, technology or marketing often helps the company to develop other lines. Will eventually employ more people in those fields.

However, in an economy that was able to sell many items usually will get negative feedback from the sectors of other economies. Or about interest rate policy. Employers often ask for lower interest rates reduced so that their businesses can become more fluent.

Entrepreneur properties, such as wanting to lower interest rates, then the house or apartment will sell quickly jualannya. For central banks, interest rates should be regulated because they are concerned to maintain that inflation does not become overheated economy which in turn raises new economic problems.

Krugman in this short treatise says, to carefully listen to advice employers on the issue of the national economy. He exemplifies the United States during the great depression in the 1930s, John Maynard Keynes called for policy makers and politicians in parliament to ignore the advice of the bankers and manufacturers.

But his advice ignored, and consequently even more severe economic crisis due to malevolent entrepreneurs who want to take advantage of a narrow slit. What about the situation in Indonesia? In addition to the public welfare are considered, the entrepreneur who became a public official is considered not possible for corruption.

This assumption could appear when selecting candidates for chairman of the Corruption Eradication Commission (KPK) recently that the new officers are people who are economically well-established that it is impossible to do this korupsi.Anggapan clearly wrong, because there is no correlation between being rich with a reluctance to corruption. In a public lecture held by the Association of Education and Democracy on May 18, Sri Mulyani explained his experience in government.

She said officials and businessmen often difficult to separate herself among the officials who make policy for the public to himself as an entrepreneur. They attempt to extract personal gain despite the government’s policy is wrapped with a very sophisticated as the interests of the community.

In another story, had at one time there is a conflict between two economic ministers on coal export tax. Ministers which one wants coal exports taxed as exports are rising. However, other ministers opposed it, and new coal exports can be taxed, if the price had doubled from the current price. Incidentally it is the ministers who opposed the “former” coal entrepreneurs.

This is where the importance of ethics for public officials, whether he’s coming from among economists, businessmen, political or professional. That once they occupy public office, then all the policies they make will affect the interests of society, and annihilate self-interest or group.

However, is this possible? When one of these days we presented a show of political drama, a businessman with a troubled about taxes and one company has caused severe environmental damage to important positions in the national political system, even a place to ask the blessing of political activists.

While the leadership of government and parliament as an eye patch over the damage already caused. What a horrible because in addition to economic power is also politically powerful.

JAKARTA – The Minister of Finance Agus Martowardojo Indonesia considered that the increase in ratings from stable to positive by Moody’s as a positive signal for Indonesia to immediately enter into the ranks of investment grade.

Thus, the government thinks will be more careful in setting fiscal and monetary policies to maintain the government’s performance.

“This was the motivation for the government to be more careful in maintaining monetary and fiscal systems to better his performance and better and stronger,” he said at the office of Coordinating Minister for Economic Affairs, Jalan Banteng Square, Jakarta, Monday (21/06/2010) .

However, he did not want to put a target date for Indonesia entered into the ranks of investment grade. According to him, the important thing is how the government maintain fiscal and monetary Performace today. “If I can not say (go into investment grade), we must work just fine,” he said.

As reported previously, Moody’s Investors Service today raised the debt ratings dominate Indonesian rupiah and foreign currency from stable to positive by Ba2 level.

“Indonesia has a strong capacity to realize berkelajutan growth, stability, and effectiveness of financial and monetary policy,” Moodys said, as quoted from Reuters.

Indonesia is also expected to improve financial performance and position of its debt. Moodys also enhance long-term rating depostito dominate foreign currency at the 10 banks in Indonesia to Ba3, from stable to positive. Last year, increasing foreign debt rating to Ba2 or two levels below investment grade

SHANGHAI – China’s government would build a new investment zones in Egypt to facilitate market access to Europe, Africa and the Middle East.

According to newspaper Financial Times, Egypt was currently negotiating with the Government of China through Tianjin Economic-Technological Development Area (TEDA).

New investment centers strategically located in the south of the Suez Canal. Based on the rules applicable in Egypt, China companies will control 49 percent maximum share of the total investment of USD1, 5 billion economic zone.

“Suez economic zone will be the first and allow large investors to connect in here,” said Egyptian Minister of Investment Mahmoud Mohieldin yesterday.

He added that the final agreement of cooperation will be achieved in the near future. Unfortunately, TEDA has not confirmed the plan related. Mohieldin estimates, in the first three years of special economic zones can absorb an investment of $ 3, 5 billion.

The sectors which China is the target of natural resources such as energy to meet its domestic needs. Financial Times report said, China is interested in projects to improve trade with Egypt State Panda that would be the entrance to the European region, Africa and the Middle East.

“TEDA has become a partner of multinational companies such as Akzo Nobel, IBM, and Toyota is expected to open their sales offices in Egypt in June of this,” wrote the newspaper.

Communication and Information Minister Tarek Kamel said Mesih, China cooperation with Egypt in the Suez Canal will provide benefits to both countries, including creating jobs for the citizens of Egypt. “They can take advantage of market growth, but can also petrify us with socioeconomic development,” he said.

Swap Transactions Reaches USD170 Million

China’s commercial banks managed to absorb the funds of USD170 billion of foreign currency trading throughout 2009. Largest revenue primarily from yuan currency swap with the United States dollar (CAD).

Shanghai Securities News quoting a former Deputy Head of National Tax Bureau stating that Xu Shanda Administration Center Currency Trade (SAFE) to record the absorption swap in China to reach one trillion yuan.

Xu predicted, these swap funds could increase to $ 500 billion this year from a total of $ 3 trillion swap funds from the global financial system. Meanwhile, the four major commercial banks owned by the Government of China is reported to have disbursed loans of 300 billion yuan during February and up 34 percent compared to January.

Four banks are Industrial and Commercial Bank of China, Bank of China, China Construction Bank, and China Agriculture Bank. The experts are asked to comment by People’s Daily Online estimate, the total bank loans last month to reach 600 billion yuan

SYDNEY – The Australian Government yesterday announced the economic growth during 2009 reached 2.7 percent. The data confirm the continued recovery after a global economic conditions gradually improved.

Government released data better than analyst projections that forecast growth over the past year only 2.3 percent. According to the government, the growth of a country rich mineral resources is driven by the stimulus and the sale of commodities to China. Special three months until December 2009, sales of Australian commodities rose 0.9 percent, the fastest since March 2008.

Australian Finance Minister Wayne Swan said, at each quarter over the past year the State’s economy Kangaroo always record a positive result.

“Australia is an exception in the other countries devastated by the global economic crisis. During the worst crisis in 75 years we are not only growing but also very solid, “said Swan, yesterday.

Solid Australian economy is also indicated by the courage of Australia Central Bank (Reserve Bank of Australia / RBA) raised interest rates four times since October last year lalu.Terakhir, Tuesday (2 / 3), the RBA raised interest rates from 0.25 percent previously 3.75 percent to four percent. “The fact we were growing economy in 2009 while other countries fell,” he said.

In comparison, last year the economic growth of the United States (U.S.) contracted 2.4 percent, while the other developed countries such as Germany and Japan to minus five percent.

Commonwealth Bank analyst Michael Blythe said, growth in Australia to give the signal to return the economy to foster that encouraged private enterprise activity that can take advantage of the stimulus funds to USD63, 2 billion.

“Public Expenditures also grew 7.4 percent in 2009 and contributed 1.7 percent of GDP growth (Gross Domestic Product),” Blythe said.