JAKARTA - MEDIA: Governor Senior Deputy of Bank Indonesia (BI) Miranda Swaray Goeltom suggested the need for the existence of sovereign wealth funds (SWF) which has the function of stabilization, investment, and savings.
"In the future, it is highly relevant to the challenges of the global economy to the Indonesian economy in the form of higher uncertainty, especially in the financial sector," she said in the inaugural speech professor of economics at the front of the Board Professor of the University of Indonesia (UI) in Jakarta, Saturday (15 / 12).
In a session lead by the Board Lecturer who is also Professor of UI Rector Gumilar Rusliwa Somantri, Miranda said the sophistication of financial markets products spawned a challenge for both the monetary and fiscal authorities. In the future, the shape of the shock to the economy will come from the global financial market and geopolitical issues.
Financial market products has grown world was touched by the international commodity markets securitization letters commodity purchase. It further complicates the international commodity trade as a commodity into a separate asset class to be on par with financial assets in the financial markets. International commodity trading suddenly face the fact that market prices are no longer determined solely by demand for exports and imports, but even more by financial market participants' expectations on price securitization letters commodity buying and selling goods.
"It is common knowledge that hedge funds and international financial market participants began concocting derivatives that have underlying securitization of buying and selling securities in international commodity markets," he said.
According to him, in recent times the price of oil approaching USD 100 per barrel level very quickly. The increase was more driven by expectations and speculative elements of international financial markets. As a country with excellence and abundance of commodities for export, Indonesia is prone to recent developments in the international market. The rapid development, according to Miranda, demanding coordination of monetary and fiscal policy to have the role of creativity in maintaining macroeconomic stability.
"Therefore, I believe that the government together with the central bank should begin to formulate concrete plans SWF formation," he said.
Basically SWF must be managed by a single goal, namely the acquisition of optimal results. Looser flexibility in its management, a SWF advantages compared with the management of foreign exchange reserves by the central bank. SWF funds can be sourced from government revenues from oil or commodity.
Miranda suggest, managers should SWF is an autonomous body set up special government official on the basis of the work of international financial institutions like modern.Mandat given to SWF managers are managing capital with the aim to profit no-frills policy.
"Based on the observations, the various countries that have an abundance of oil and other commodity endowment, has begun to form SWF respectively. State, among others, the United Arab Emirates, Singapore, Brunei, Malaysia, Taiwan, Canada, and others," he said. (*)
"In the future, it is highly relevant to the challenges of the global economy to the Indonesian economy in the form of higher uncertainty, especially in the financial sector," she said in the inaugural speech professor of economics at the front of the Board Professor of the University of Indonesia (UI) in Jakarta, Saturday (15 / 12).
In a session lead by the Board Lecturer who is also Professor of UI Rector Gumilar Rusliwa Somantri, Miranda said the sophistication of financial markets products spawned a challenge for both the monetary and fiscal authorities. In the future, the shape of the shock to the economy will come from the global financial market and geopolitical issues.
Financial market products has grown world was touched by the international commodity markets securitization letters commodity purchase. It further complicates the international commodity trade as a commodity into a separate asset class to be on par with financial assets in the financial markets. International commodity trading suddenly face the fact that market prices are no longer determined solely by demand for exports and imports, but even more by financial market participants' expectations on price securitization letters commodity buying and selling goods.
"It is common knowledge that hedge funds and international financial market participants began concocting derivatives that have underlying securitization of buying and selling securities in international commodity markets," he said.
According to him, in recent times the price of oil approaching USD 100 per barrel level very quickly. The increase was more driven by expectations and speculative elements of international financial markets. As a country with excellence and abundance of commodities for export, Indonesia is prone to recent developments in the international market. The rapid development, according to Miranda, demanding coordination of monetary and fiscal policy to have the role of creativity in maintaining macroeconomic stability.
"Therefore, I believe that the government together with the central bank should begin to formulate concrete plans SWF formation," he said.
Basically SWF must be managed by a single goal, namely the acquisition of optimal results. Looser flexibility in its management, a SWF advantages compared with the management of foreign exchange reserves by the central bank. SWF funds can be sourced from government revenues from oil or commodity.
Miranda suggest, managers should SWF is an autonomous body set up special government official on the basis of the work of international financial institutions like modern.Mandat given to SWF managers are managing capital with the aim to profit no-frills policy.
"Based on the observations, the various countries that have an abundance of oil and other commodity endowment, has begun to form SWF respectively. State, among others, the United Arab Emirates, Singapore, Brunei, Malaysia, Taiwan, Canada, and others," he said. (*)
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