ID :
35383
Sat, 12/13/2008 - 08:04
Auther :
Shortlink :
https://www.oananews.org//node/35383
The shortlink copeid
VEEP: IMPACT OF CRISIS ON INDONESIA NOT TOO SIGNIFICANT
Palembang, S. Sumatra, Dec 12 (ANTARA) - Vice President Jusuf Kalla said here on Friday that the current crisis in the developed countries particularly the US would not have a significant impact on Indonesia's economic growth.
The crisis will affect countries that have a high rate of consumption such as the US and other advanced countries because capitalist countries usually depend upon credits and credits require trust, he said when opening the national meeting of the Association of Indonesian Muslim Scholars (ICMI).
He said capitalist countries usually relied on credits so that when institutions that facilitated loans went bankrupt its impact directly affected all their economic sectors.
Moreover one of the requirements for getting credits was trust so that when the trust was eroded its impact would affect distribution of credits, he said.
Kalla said he believed the financial crisis in the capitalist countries would not have a significant impact on the country's economic growth.
"At most it would only affect exports but it is predicted it would not be much because our export products are products that they will always need such as crude palm oil and coffee," he said.
Moreover the export commodities that Indonesia sells are cheaper than from other countries particularly Europe, he said.
Kalla said in time of crisis those countries would certainly choose to buy cheaper products such as textile products from Indonesia rather than from Italy so that the chance to maintain the industry remained big.
In view of that he called on the people to remain optimistic in the current crisis, saying that there were lessons and opportunities that could be taken through hard work and by producing good products.
He said all products produced by farmers and in factories in Indonesia would continue to attract buyers in the midst of current crisis.
The crisis will affect countries that have a high rate of consumption such as the US and other advanced countries because capitalist countries usually depend upon credits and credits require trust, he said when opening the national meeting of the Association of Indonesian Muslim Scholars (ICMI).
He said capitalist countries usually relied on credits so that when institutions that facilitated loans went bankrupt its impact directly affected all their economic sectors.
Moreover one of the requirements for getting credits was trust so that when the trust was eroded its impact would affect distribution of credits, he said.
Kalla said he believed the financial crisis in the capitalist countries would not have a significant impact on the country's economic growth.
"At most it would only affect exports but it is predicted it would not be much because our export products are products that they will always need such as crude palm oil and coffee," he said.
Moreover the export commodities that Indonesia sells are cheaper than from other countries particularly Europe, he said.
Kalla said in time of crisis those countries would certainly choose to buy cheaper products such as textile products from Indonesia rather than from Italy so that the chance to maintain the industry remained big.
In view of that he called on the people to remain optimistic in the current crisis, saying that there were lessons and opportunities that could be taken through hard work and by producing good products.
He said all products produced by farmers and in factories in Indonesia would continue to attract buyers in the midst of current crisis.
