(Indonesian) Rupiah Gains as Growth Prospects Offset U.S. Rating Concerns (GDP grew 6.49% in Q2)

[Turborama]

Source: Bloomberg

By Khalid Qayum - Aug 8, 2011 10:47 AM GMT+0800

Indonesia’s rupiah had its biggest gain since November on optimism growth in Southeast Asia’s biggest economy will attract global funds.

The currency has advanced 5.3 percent this year as overseas investors bought $2.5 billion more local shares than they sold, exchange data show. Indonesia’s gross domestic product rose 6.49 percent in the three months through June from a year earlier, compared with a revised increase of 6.47 percent in the previous quarter, the Central Bureau of Statistics said Aug. 5. The Dollar Index in New York dropped for a second day after Standard & Poor’s lowered the world’s biggest economy’s credit rating by one level to AA+ on Aug. 5.

“From the local side, we still have good economic fundamentals,” said Lindawati Susanto, head of treasury at PT Bank Resona Perdania in Jakarta. “People think that if the U.S. is getting worse, then money will come into Asia. That’s why Asian currencies including the rupiah are getting stronger.”

The rupiah gained 0.6 percent, the most since Nov. 18, to 8,525 per dollar as of 8:45 a.m. in Jakarta, according to data compiled by Bloomberg.

Read more: http://www.bloomberg.com/news/2011-08-08/rupiah-gains-as-growth-prospects-offset-u-s-rating-concerns.html

[msongs]

1. OUR corporations sent the jobs to Asia, not surprising they will take the money there too nt

[Turborama]

2. Indonesia's success is mainly due to domestic consumption

This news is not due to the actions of American corporations, for once it's down to what a country has been doing right. http://en.wikipedia.org/wiki/1997_Asian_financial_crisis#Indonesia">They learnt a hard lesson in the late 90s during and after the Asian financial meltdown. A case study that elected officials in the US should learn a lesson from...

Strong Q2 growth puts Indonesia in a sweet spot

JAKARTA: Indonesia's economy grew a robust 6.5% in the second quarter, propelled by the dual engines of export income and faster investment that could potentially shield the country through the next few quarters of a darkening global outlook.

Domestic demand, one of the biggest contributors to Indonesia's economy, also rose at a healthy pace, showing South-East Asia's largest and fastest-growing economy was firing on all cylinders.

The strength of the economy and easing inflation place Indonesia in an enviable position in a region increasingly worried about stalling growth in its biggest consumer base, the United States, and the growing risks of contagion from Europe's debt crisis.

The economy could grow at 7% next year, supported by growing industrial output, the statistics bureau said following the data release yesterday. The estimate is largely in line with the central bank's 6.4%-6.9% projection for 2012.

Full article: http://biz.thestar.com.my/news/story.asp?file=/2011/8/6/business/9248154&sec=business

[Amonester]

3. Only to 'end up' in the same (if not worse) mess in...

a couple of decades from now...

"Doing the same thing over and expecting different results is..." :crazy: