Jakarta (ANTARA News) - As much as US$2 billion in foreign capital funds flowed into Indonesia during the first quarter of 2009, reflecting a recovery of investors` confidence in the country, a minister said.
"As we can all see, the rupiah is currently beginning to strengthen, and the stock price index has advanced. During the first quarter of 2009, the government has recorded the entry of more than US$2 billion in foreign capital into Indonesia.
Therefore, the government will continue to protect the favorable perceptions of the Indonesian economy," Coordinating Minister for Economic Affairs/Finance Minister Sri Mulyani Indrawati said here on Wednesday.
Minister Sri Mulyani made the statement when speaking at a seminar on the government`s work plan 2010 themed "National Economic Recovery and Maintenance of the People`s Welfare" here on Wednesday.
She said in the current global economic crisis, funds in developing countries had fled to the countries of origin so that the developing countries` funds had dried up.
"The flow of foreign capital into developing countries has dropped by almost US$600 billion to US$170 billion. Many countries are competing to attract the foreign capital funds so it has become difficult to obtain capital," she said.
However, Indonesia`s economy was at present still considered more stable compared to other countries in the world, because its economic growth projection in 2009 was still positive within a range of 4.3 to 4.8 percent, according to Sri Mulyani.
"Therefore, we are seen as positive by investors as our economy has passed the test amid the ongoing global economic crisis," the minister said.
Meanwhile, the chief economist of state-owned Bank Mandiri, Mirza Adityaswara, said here on Tuesday (April 21) the critical point in the economic downturn had been passed and therefore the country`s economy had now started to improve.
He said the central bank`s statement that the country`s economy had grown 4.6 percent in the first quarter of 2009 was good news for the market because its earlier forecast was that the economy would grow below four percent or around three to four percent. "This means we are still strong," he said.