Indonesia could take
advantage from great inter-ASEAN trading to allow Indonesia to diversify risk
and strengthen resistance amidst global turbulence. This was the opinion of
Amirul Feisal Wan Zahir, Group Head, Global Banking, Maybank spoken in Invest
Asean Indonesia in Jakarta on Tuesday (6/10).
Furthermore Feisal Stated that diversification in ASEAN
Growing market would be attractive to Indonesian companies amidst adverse
economic condition today.
Indonesia according to Feisal had vast opportunities to
make profit in ASEAN. Indonesia was great economy in ASEAN and the ASEAN Economic
Community might serve as sentiment to growth. “Indonesian is blessed with
impressive demography as vast market but ASEAN could offer even greater
opportunities,” Feisal said.
According to Research by May Bank King Eng, ASEAN was
today at Inflection Point of Capital Expenditure and the formation of AEC
opened regional growth in the years to come. One of the main factors was
lifting of trading barriers which enhanced inter-ASEAN trading and foreign
Direct Investment (FDI).
Today inter-ASEAN trading was posted at 24% of total ASEAN
trading while investment in the region remained low at 18%. Meanwhile countries
of North America exported 40% of their products for inter-regional trading,
countries of the Europe Community exported 60% of their products for
inter-regional trading.
Stressing on the importance of forming ASEAN Economy
block, Feisal believed that in the “new normal” condition, ASEAN states must
foster strong ties through economic collaborations, building strong resistance
to external shock and minimize dependency on the West. “ASEAN must help
themselves to find opportunities, there is never any better time to be ASEAN”
Feisal concluded.
Just like other ASEAN states, Indonesia was facing
short-term challenge like weakening of economy and depreciation of Rupiah.
Nevertheless Maybank remained optimistic bout the outlook
of Indonesia’s long term economy because of the strong fundamental economy.
With the support of stable macro economy, the Indonesian Government in the 2016
Budget Plan had decided to Propel growth by increasing infra structure spending
by 8% from Rp.290 trillion to create greater investment opportunities.
Increased infra structure spending would step up greater
access ability and inter-connectivity as well as promoting education and
development opportunities in Indonesia.
In that same opportunity CEO of Maybank Kim Eng group,
Jhon Chong stated that various infra-structure projects must be financed by the
capital market especially the bond market and Sukuk which were effective
alternative financial resources to finance certain infra structure projects in
Indonesia. The Rupiah bond market would enable sponsored projects to seek for
long term financing with fixed interest to ensure financing. (SS)
Business News - October 9, 2015
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