News Room - Business/Economics

Posted on 06 Oct 2008

RI market temporarily safe from US financial crisis : economist

Economist Eric Sugandi said here Tuesday Indonesia`s stock market was safe from the fallout of the US financial crisis because the market in the country was closed for the Idul Fitri holidays.

 

"The US Congres`s refusal to approve the US$700 billion bail out funds to overcome the country`s financial crisis had had a tremendous impact on the world economy. However, Indonesia is safe from it because its market is closed because of the Idul Fitri festivity," said the Standard Chartered Bank economist.

 

Eric said markets around the world had panicked by the US Congress`s refusal and crisis was expected to get worse.

 

"The Indonesian market probably will experience the impact of the US financial crisis if the US fails to overcome the crisis this week. This could happen because the fluctuations in the world economy may become more extreme," he said.

 

Eric also said the Indonesian government must be alert to the matter because though the impact was not big today, it could be different in the future. (*)