Certificates of Bank Indonesia in Attracting Foreign Investors

Certificates of Bank Indonesia is one of the macro indicators of economic growth than inflation, the exchange rate, oil prices, and government spending. In the midst of a global economic recovery and government efforts to improve the economic role of the real sector, the level of Bank Indonesia Certificates (SBI) is seen as one of the factors that support and attract foreign investors to play in Indonesia.

Although it is undeniable and somewhat difficult to argue that interest rates are almost zero in the U.S. and Japan as well as the economic crisis that occurred in parts of European countries still have not been able to encourage Indonesia to be like a virgin pretty attractive to foreign investors to invest in a country known for wealthy this natural resource.

Supporting factors such as economic growth in Indonesia in a positive, stable safety factor also could not mensokong desire Indonesia became one of the goals of foreign investors' capital.

Indonesia is not Singapore is a country with a very minimal level of corruption. Unexpected economic costs and application of the law is still selective logging and the level of government spending (this year) which should be the biggest driver of economic growth can not even do anything (to be very minimal level), may have to be overcome if Indonesia wants to be one a safe place to invest and comfortable.

Despite whatever the case, other than government bonds and stocks, while SBI is still one of the instruments where the flow of foreign funds primarily to fund short-term (1-3 months). This condition was not to watch.

Bank Indonesia plans to reduce issuance of SBIs, especially for the short term, although it is still difficult because of the high market liquidity. But the termination of the sale of SBI can not be done because the SBI is one of the instruments used to absorb excess liquidity that market.

In addition, the news arrives that the government's role in encouraging economic growth this year fell compared to the previous two years, also be a negative indication.

This can be a pair of binoculars that are less good for people outside the government saw a slow performance in taking an important role to overcome the global economic crisis in general and the handling of micro and macro economics Indonesia in particular.

Government budget surplus resulted in the slowing of economic growth in Indonesia as a whole. Especially if the delay was caused by jelimetnya bureaucracy.

If you have this SBI could not do much to boost economic growth rates in Indonesia. Especially if Indonesia will continue to target economic growth at Kisara 6% - 7% in 2011. SBI is used to control the stability of the rupiah could be helpless if the government can not increase the value of shopping.

Absorption of a low budget would disrupt the economy, especially the real sector. When disturbed the real sector, it means there will be a lurking crisis shaking the economy of Indonesia. If the crisis shaking, that means the government's desire to make Indonesia as the country's overseas investment destination will be farther away.