Capital Dilemma for Indonesia

[Vanhelsing]

Yet, to get a feel for how visceral a shock the crisis was and how powerful its legacy, one really needs to look at Indonesia's present leadership.

Between 38 and 39 percent of Indonesian government bonds are held by foreigners, Nazara says. Of that, about a third is held by what he calls long-term non-resident holders: insurance companies and the like who aren't inclined to trade the securities regularly

Retreat isn't an option, of course: Nazara and other Indonesian leaders know they need to reconcile their caution with the need to be part of the international financial system.

But critically, they also need to find a way to attract enough capital to finance President Joko Widodo's $350 billion infrastructure program.

Such projects are vital to boosting Indonesia's long-term growth rate. Failure wouldn't spur a crisis similar to 1997-98, but would hamstring efforts to diversify the economy away from its reliance on commodity exports and create the kind of manufacturing jobs that would greatly expand its middle class.

. Inequality has become a pressing political issue, decried by politicians from Widodo down. Yet the only way to lure sufficient investment to create jobs and eradicate poverty is to get buy-in from foreigners – something nationalist-minded policymakers continue to struggle with.

full article http://www.afr.com/opinion/columnists/capital-dilemma-for-indonesia-20170724-gxhq0i

 

[Davita]

Hi Van...your link needs a subscription to open and read.
I wonder about Australian news...every time I want to read something I find the same...they need a subscription to open.
I was very interested in Clive Palmer being sued by the Gov't but cannot open any OZ news media without they want money...yet can read the Vancouver Sun; UK Financial Times; Hong Kong SCMP; a digital version of Jakarta Post and full version of Jakarta Globe free.

 

[Davita]

Thanks Van...interesting topic.
I like what Widodo is doing and so far he has prevented anarchy and solidified some of the Community...we'll wait and see the results at the next election.
I also have faith in Sri Mulyani (Finance Secretary). I wish she had been on board when the amnesty act was written...she came on the scene later. I'm sure she would have drafted it more clearly to ensure the objective of getting all those funds, stored by Indonesians offshore, returned.

 

[dafluff]

Mod Note: Posting full content of articles that are behind a paywall is against our forum rules. I have removed the offending content.

 

[satomoto]

Hi Van...your link needs a subscription to open and read.
I wonder about Australian news...every time I want to read something I find the same...they need a subscription to open.
I was very interested in Clive Palmer being sued by the Gov't but cannot open any OZ news media without they want money...yet can read the Vancouver Sun; UK Financial Times; Hong Kong SCMP; a digital version of Jakarta Post and full version of Jakarta Globe free.

IIRC AFR always ask readers to subscribe, a bummer.