Capital control system<\/p>\n
I would like to comment on the Jakarta Post article \"Jakarta
\nshould not copy Malaysia's capital controls\" (Sept. 29) by Mr.
\nEddy Soeparno -- AMEX's Corporate Finance Director, and would
\nlike to suggest that current or future government should quickly
\nadopt Malaysia's style of capital control system for the
\nfollowing reasons.<\/p>\n
1. We are a very rich nation having a large resource base and
\nmarket.<\/p>\n
2. We do not need short term U.S. dollar funds as our foreign
\ndebts have been rescheduled.<\/p>\n
3. Emerging markets have experienced the same problem and
\nliquidity movement (still undetected) leads to a sudden contagion
\neffect.<\/p>\n
4. Diversifying foreign currency financing in the future and
\nreducing dependency on an overseas bail out.<\/p>\n
Greater export volume and value, higher FDI and more relaxed
\nregulation should be encouraged.<\/p>\n
6. IMF fund constraints due to lack of donors' support and
\nunclear policy which prolong and widen the crisis to other
\nsectors which originated from financial sector.<\/p>\n
7. Excess liquidity in Europe and USA leads to further search
\nfor higher yield in Southeast Asia.<\/p>\n
By implementing such controls the government can resist the
\npressures from U.S. dollar holders, put another pressure on U.S.
\ndollar creditors as well as kick out the U.S. dollar speculators.<\/p>\n
I hope more contributions will come from experts to support
\nthese ideas.<\/p>\n
IRWAN IBRAHIM<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/capital-control-system-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }