Eskesen said uncertain global economic conditions in general were still a risk Asian countries, including Indonesia, needed to be aware of.Jakarta (ANTARA News) - Indonesia will not yet be free from the impact of the European and US financial crisis in 2012 because the turmoil`s effects reach the country through the financial system, an observer said.
"The potential risks of the global crisis will reach Indonesia through financial channels such as the stock market which has absorbed huge amounts of foreign capital," said Leif Eskesen, chief economist for the ASEAN region of HSBC here Tuesday.
Speaking at a discussion on an HSBC Economic Outlook 2012 report, Eskesen said uncertain global economic conditions in general were still a risk Asian countries, including Indonesia, needed to be aware of.
However, he was optimistic that Indonesia`s high foreign exchange reserves would enable the country to minimize the impact of the global crisis.
"Indonesia is a country oriented to its domestic economy, this is the factor that protects its economy from the effects of the global economic crisis," he said.
On the same occasion, Ali Seriawan, Co-head of Global Markets HSBC Indonesia, said Indonesia had the capability to weather the impact of the global crisis over a short term.
Underlying the capability was the high investment levels achieved because investors were attracted by cheap labor in Indonesia.
"The labor wages level in Indonesia is relatively low, and this made Indonesia attractive for investment. This is also supported by the base amount of domestic consumption, as well as the country`s on demographic conditions" he said.(*)
Editor: Heru Purwanto
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