E-conomics for non economics [Ideas] The domination of foreign investment in Indonesia

E-conomics for non economics
Ideas.Insight.Impact

[Ideas]
The domination of foreign investment in Indonesia

Do you realize that nowadays, you are living in a country where everything is free to trade, there’s no such rules or laws enforcement that can save our local industry. Such a big industry like finance and banking, ciggarets, retail and other are dominated by foreign based company. Where are we? Our local industry is the winner in raw material handling, by exporting raw material without creating more valuable goods, so when we still harvesting and exporting raw material, our neighborhood country is trying to do something with our materials and turn it to something more and more valuable. We should know it and do something about it. So, this is what I see as an approach, to give a broad perspective about foreign investment in our country, and what to do with them, I have some thoughts that the basic things that local company concern is the financing of their business, they need to keep their business run well with support from bank, this is the ideal thing.



Banking Industry
A few days ago, the bank of Indonesia through the initiatives of local banker and legislative board of Indonesia will be make an in depth analysis about the rules in banking industry. They finally realize it, let’s hope it’s not late to realize. That our banking industry should have a rules concerning of the foreign investment in our local bank, it’s a pathetic condition I think. The portion of foreign investment right now is 38% of our banking industry, that’s means the foreign company have the rights as big as that portion. Look at OCBC, Maybank,UOB,CIMB, HSBC or temasek holdings they are our neighborhood who capture and eat us. and dont forget bank another bank from US, India, Netherland, Japan, Australia and China, they also acquire our local bank. What about us? Bank Mandiri still has the program to be the best regional bank, let’s give bank mandiri applause as a government bank they strive for the banking industry.

I can say I am contrary to this kind of situation, because the foreign bank always looking for the growth of consumer credit not the business credit. Why? Because the consumer credit gives a more profit compared to business credit and the best thing is the risk potential lower than business credit. The non performing loan (NPL) of the business credit id higher than consumer credit. So I say why bother over priced bitter black coffee when you can get sweet coffee with extra milk? Black coffee refers to business credit, where it is what our country most needed. We need the consumption to boost the production, but I think if we can give an extra on production we can have an extra income, extra labor and more business opportunity! When you sip a black coffee it will taste bitter but you seek the impact of the drink, the caffeine that can boost up your energy and make you happy.

What if when the local banks boost the micro credit to help micro industry? They use your money in a right direction, maybe they won’t use our money to buy something that will increase inflation as in the consumer credit. If those foreign bank is also concern on micro business credit, helping the local corporate, like they act as they’re part of us, not just doing business for their own sake and country, then I can say welcome to them. But if they’re still like the same old profit seeker rentenir, so I can say let’s save our money in Mandiri or Bri. We save our money not to just gain on the interest rate, we help, others with it. We buy products or service with our credit card not to only the benefit we get, we also help the economics growth by our consumption.

Well it’s my ideas, and it’s worth nothing without action. Let’s just hope that the bank of Indonesia, the legislative board, and the Indonesia chamber of commerce can collaborate well to make new rules about the banking system in our lovely country. After all we will see who will be the new governor of the bank of Indonesia, will he set the regulation free that will make maximum 49% of foreign investment, or set the red signs for the foreign company. And the final impact is to give our local industry a chance and opportunity to compete in the wide open free global market, well maybe not only a chance but also the competitive strength.



E-conomics for non economics
Ideas.Insight.Impact

Rianhafizblog2009