{
    "success": true,
    "data": {
        "id": 1395500,
        "msgid": "capital-inflows-have-destabilizing-impact-1447893297",
        "date": "1998-10-12 00:00:00",
        "title": "Capital inflows 'have destabilizing impact'",
        "author": null,
        "source": "DJ",
        "tags": null,
        "topic": null,
        "summary": "Capital inflows 'have destabilizing impact' NEW YORK (Dow Jones): Although capital inflows will be crucial in reactivating the Indonesian economy, they can have a very destabilizing impact and need to be monitored, the head of the country's central bank said Friday. \"While a speedy recovery is highly desirable, we have to avoid falling in the same trap in the future,\" Sjahril Sabirin said in a prepared statement during a conference on Indonesia's economic outlook organized by the Asia Society.",
        "content": "<p>Capital inflows 'have destabilizing impact'<\/p>\n<p>NEW YORK (Dow Jones): Although capital inflows will be crucial<br>\nin reactivating the Indonesian economy, they can have a very<br>\ndestabilizing impact and need to be monitored, the head of the<br>\ncountry's central bank said Friday.<\/p>\n<p>\"While a speedy recovery is highly desirable, we have to avoid<br>\nfalling in the same trap in the future,\" Sjahril Sabirin said in<br>\na prepared statement during a conference on Indonesia's economic<br>\noutlook organized by the Asia Society.<\/p>\n<p>\"While we are fully aware of the importance of capital<br>\ninflow...we have learned a lesson that short-term capital inflow<br>\ncan be volatile and destabilizing and therefore should be kept<br>\nmonitored and checked,\" Sjahril said.<\/p>\n<p>In his statement, Indonesia central bank governor Sjahril<br>\nreiterated that the government has put in place a system to<br>\nmonitor offshore liabilities of Indonesian companies.<\/p>\n<p>\"In the spirit of market-friendly policy, a (prudent)<br>\nreporting system and external debt management are deemed<br>\nnecessary. In this respect, we introduced a reporting system on<br>\nforeign liabilities in April this year,\" he said.<\/p>\n<p>Indonesia's senior economics minister Ginandjar Kartasasmita<br>\nearlier Friday told reporters in Jakarta that his government was<br>\nconsulting with the International Monetary Fund and the World<br>\nBank to gauge their views on a plan to better monitor the flows<br>\nof capital.<\/p>\n<p>Back in New York, the head of Indonesia's central bank<br>\nstressed that his country had already introduced several<br>\nlegislative measures to revamp the country's economy.<\/p>\n<p>\"Notwithstanding the problems and sufferings we have had to go<br>\nthrough, we have taken advantage of the opportunities arising<br>\nfrom the difficulties to improve our economic, social, political<br>\nand legal structures,\" he said.<\/p>\n<p>Stressing the magnitude of the crisis hitting Indonesia,<br>\nSjahril said that the country's economy could contract by as much<br>\nas 15 percent of gross domestic product in 1998.<\/p>\n<p>The government's official forecast is for a 13.7 percent<br>\neconomic downturn for this year and inflation of 80 percent. But<br>\nmost recent data show that the Indonesian economy slumped 17.4<br>\npercent in the third quarter of 1998 alone.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/capital-inflows-have-destabilizing-impact-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}