Teropitka Business and Finance

Archive for the ‘Dumping’ Category

The financial crisis that occurred in the United States have seen the signs a while ago, but just to be taken seriously by the government of Indonesia from October 8, 2008 when the index fell sharply on the Stock Exchange up to 10.38% and requires the government to stop the activity in the stock market capital some days.

Actually a lot of repercussions felt by Indonesia with the financial crisis in the United States, both positive as a result of falling world oil prices through the $ 61 per barrel and negative impacts such as falling value of rupiah, export value decreased, falling investment or occur flyingout, however due to perceived more negatively to the Indonesian economy, especially for the real sector which has the share of exports, the government must seriously address this issue because in the end if not handled properly will result in distabilitas countries or often people say will happen Crisis second series.

that there must be anticipatory measures to face global financial crisis among other things, while maintaining the independence of decision makers, as much as possible keep interest rates currently available, the increase in deposit insurance ceiling on National Finance Institute, a massive injection of liquidity into the banking nasioanal , imposition of exchange controls is limited, the establishment of procurement agencies to manage state-owned foreign exchange transactions, must permit the central bank for the outward flow of capital transactions within a certain amount. Besides, discussions were also merekomendasiakan: Preparation of a scheme of comprehensive social safety net in anticipation of full-blown crisis, local governments are more closely as partners and implementing various policies have been defined, politically aware dumping, Preparing an incentive for local entrepreneurs to work on the domestic market, and recommended to review the economic system that had been trailing in the capitalist economic system.

One of the most important factors that could explain the above trend is because economic and political adjustment process (economic and political adjustment) does not take place smoothly and naturally. Suharto-style state-assisted capitalism’ve obviously merapuhkan damage and economic order. Indeed, on one side of economic growth that has generated quite high, but the resulting excess of the edges are actually counter productive for sustainable growth.

Third, a very corrupt regime has made the joints of the economy experiencing fragility. In general, all forms of corruption will result in the allocation of economic resources leads to activities that are not productive and does not provide optimum results. Under these conditions of economic growth is very likely continue, even at relatively high intensity. However, to some extent bound to lead to weakening growth base.

Furthermore, corrupt practices are slowly but surely C C has been destructive to the economic and political decay caused by the behavior of rulers, the political elite, and the bureaucracy. The situation worsened when the ranks of the armed forces and law enforcement officials also appeared to also be dragged into a network of corrupt practices that.

The destruction of the credibility of the government coupled with a high level of uncertainty that has caused the erosion of confidence (trust). What happened today is not just fading the public trust towards the government and vice versa, but also between foreign parties and the government, and among community groups.

In the midst of global economic dynamics are constantly changing with the increasingly high acceleration as described above, Indonesia has experienced the intensity of exposure to hurricane crisis has reached the state of the economy almost to bankruptcy.

The economic crisis – triggered by the monetary crisis – some time ago, at least have given a strong indication of three things. First, the credibility of the government has reached the nadir point. The main cause is due to the steps taken by the government in crisis merenspons far more to be “stitch-up”, ad-hoc, and tend to resort to spinning.

In addition, the entire resources of this country devoted entirely to save the modern sector from the point of destruction. Meanwhile, the traditional sector, informal sector, and people’s economy, which also has a presence in this country seemed to be forgotten from the discourse of economic rescue that was echoed.

Second, the New Order regime that always focuses on growth (growth) economy has resulted in crony capitalism that has made a very fragile economic structure of the external upheavals. Manufacturing industry could be proud of it was heavily dependent on imported raw materials and has no durability. Meanwhile, due to “dianak-tirikan”, the agricultural sector was also still not mature as the support of the rate of industrialization. What then happens is the pace of industrialization through a series of policies that tend to harm the agricultural sector. As a result, the agricultural sector is growing at a healthy unable to respond to changes in consumption patterns of society and strengthen the competitive advantage of Indonesia’s export products.

Concerns over the negative impact of the global economic downturn on the economy in countries with emerging markets and the phenomenon of flight to quality from global investors in the midst of today’s world financial crisis, has put pressure on currencies around the world, including Indonesia and the United States dollar drain liquidity in the market Domestic many countries. This led to the forex markets in developed countries and developing countries tend to be volatile amid uncertainty increases. As a country with open economy, even though Indonesia has built a momentum of high economic growth, will not be apart from the negative impact of the weakening world economy. The global financial crisis that began to affect significantly in the third quarter of 2008, and the second round will begin to be felt effectnya increase in intensity in 2009, is expected to have a negative impact on Indonesia’s macroeconomic performance in 2009 both in the balance of payments and balance of the real sector, as well as monetary sector and fiscal sector (state budget). The most immediate negative impact is felt as a result of the global economic crisis is the financial sector through a sentiment of the psychological aspects as well as due to the falling global liquidity. Decline in stock price index in Indonesia Stock Exchange (IDX), reaching about 50.0 percent, and depreciation of the rupiah is accompanied by increased volatility. Throughout 2008, the rupiah has depreciated by 17.5 percent. The tendency of the volatility of the rupiah is still going to continue until 2009 with the still ongoing efforts to reduce debt (deleveraging) from global financial institutions.

The whole world has been overwhelmed by the financial crisis (global economic crisis), all the countries in the world both developed and developing countries have been trapped in a very complex difficulties. Some countries that previously enjoyed strong economic conditions that have sophisticated technology in terms of science, food, weapons, drugs destroyed perekonomiannnya visible. The fact of the matter is that the economies of these countries supported by policies that are very fragile which causes collapse affected by global economic crisis.

The global financial crisis which led to decrease drastically the performance of the world economy in 2008 is predicted to continue, will even increase in intensity in 2009. Slowing world economic growth, besides causing global trade volume in 2009 dropped sharply, also will have an impact on the number of large industries that go bankrupt, the decline in production capacity, and the surge in unemployment over the world. For developing countries and emerging markets, this situation could damage economic fundamentals, and triggered the economic crisis.

Concerns over the negative impact of the global economic downturn on the economy in countries with emerging markets and the phenomenon of flight to quality from global investors in the midst of today’s world financial crisis, has put pressure on currencies around the world, including Indonesia and the United States dollar drain liquidity in the market Domestic many countries. This led to the forex markets in developed countries and developing countries tend to be volatile amid uncertainty increases.

September 15, 2008 to record the dark history of the United States economy, the bankruptcy of Leman Brothers, one investment company or the bank’s senior financial and 4th largest in the United States to be the beginning of the drama of the financial crisis in the country glorifying the capitalist system with no limits. Who would have thought a country which is a wall of the capitalist world would collapse. Unfortunately what happens in the United States quickly spread and spread throughout the world. Only moments after the collapse of the information world financial center in America, stock market transactions in various parts of the world such as Hong Kong, China, Australia, Singapore, South Korea, and other countries has decreased dramatically, even the Indonesian Stock Exchange (IDX) should be suspended for several days, Indonesian government also seemed to panic in addressing these issues, this event marks the initial phase feels the impact of the global economic crisis which was originally incurred in the United States is perceived by the Indonesian state.

Viewed from a contributing factor, the global economic crisis at this time is different from the economic crisis that hit Indonesia more or less a decade ago, which at that time the economic crisis that hit Indonesia more due to the inability of Indonesia provides a means of payment abroad, and not sturdy economic structure Indonesia, but the global financial crisis in 2008 is derived from factors that occur overseas. But if we are not careful and vigilant in addressing this problem, it’s possible impact of the global financial crisis in 2008 this will be the same or even worse when compared to the impact of the economic crisis that occurred in 1998.