FLGS – Global Finance Report

The government’s lack of an appropriate strategy to manage the flow of funds into the country to revive the real sector.

So that the funds come from outside will only be hot money, where if the conditions in the volatile country such hot money could easily go to other countries.

“What we do not have what the risk to be money coming in we absorb adopt risk. We have a system enggak. we are stagnant, the DPK all get together in big banks, in exchange transactions, we are busy in the money market, “said Capital Market Observer, Yanwar Rizki, after the polemics Trijaya FM, in Warung Daun, Cikini, Jakarta, Saturday (30 / 1 / 2010).

He stated that the Government should be able to follow the example of several countries that dare to take advantage of the flow of hot money to run the real sector.

Dicontohkannya, China which has institutions that are tasked to find the hot money, but those funds will flow in the form of subsidies to certain sectors.

“In 2010, China had been doing the tightening of liquidity, but for agriculture and rural business subsidies provided by him. As driving by the government to lower interest rates as a cost factor. Country’s estimated production costs decline for the sector absorbs the largest kindergarten, “he said

Meanwhile, in European countries the government provides tax incentives for banks to give credit to the dominant sector and the government set also providing tax incentives for companies that reinvest into This real sector. It is the Government should do to manage the flow of hot money entering the order does not come easily.

“Just pick which one? we is not no nothing, just silence. There if the index rises, it strengthened the exchange rate falls, “he concluded.