One Comment on “Competing with Singapore”

1. Dragonwall Says:
   September 10th, 2007 at 1:15 am

   If you really looked more in depth it really shows that the local did not increase but just sheer figure manipulation due to exchange rates,

   Investment company manipulates, or the government manipulated by making calculation based on USD from year to year using such prevailing exchange rates to balance their book to show PNL.

   Therefore the so call increase is not surprising at all. That is they actually remain stagnant. Anyone with an economic mind will be able to tell when foreign investment fell local investment will follow suit instead of rising. It will only rise when foreign investment increases. If it remains the same figure during a stabilizing of the rupiahs then will we be able to consider it a rise.

   This is what I see as the failure in doing their due diligence and providing the public with fictitious figures.
   It is like a company’s that is public listed and when figures are grossly manipulated it gives investors a picture of the company ding well but in fact it is losing money.

   Simple. If you invest 1 million @ 8,000 rupiahs = 8 billion rups.
   When exchange rate fell to 11,000 = 11 billion rups so is there a rise or fall.

   On the other hand if the 1 million @ 11,000 = 11 billion rups and when it strengthen to 8,000 then the investment of 11 billion becomes 1.4 million USD.

   That is the difference. Noting that when investments is in it will no longer be USD.
   So the management and diversifying of funds in an investment is of ultimate importance not just investing only.

   Many foreign country hedges their foreign investment against the currency of the country of their investments in anticipation of a volatile unforeseen econo yo yo especially countries like, Indonesia, Thailand and Philippines.

   Here you could see and weigh the competence of these people in BI.

   Unlike in singapore when the currency fluctuations is so minimal or stabilized throughout or like in Malaysia and Hong Kong where they pegged their currencies to the USD, an increase in portfolio will show real time rise instead of figure manipulation.

   So such comparison in percentage with other countries does not necessarily mean it is doing well.

   People will sit and laugh at you while you show the world the ignorance of a real world in action whereas you are still in a world of fantasy.

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