Increasing Chinese Investment After The Start Of The Free Market

Free Market in Indonesia came into effect beginning in January 2010 where the realization of investments from China to Indonesia increased after implementation of the Free Trade Agreement (FTA) ASEAN-China which entered into force earlier this year. "The average investment of U.S. $ 50 million per year from 2005 to 2009.

Before the implementation of the ASEAN free-market-China, investment from China to Indonesia of U.S. $ 16 million per year from 2000 to 2004. Investment from China to Indonesia industry sectors including textiles, wood, basic chemicals, food, metals, and transportation.

With the free market trade in Indonesia is expected to be stable again as happened before the first financial crisis of 1998, with the free market is Indonesia-China cooperation will be formed substantially in the field of trade in various fields.

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Indonesia's Economic Recovery in 2010

Economy in Indonesia could be said the country is still below average asean countries like Malaysia and Singapore, but in economic development since the economic crisis of 1998 until now still no significant progress only in the dollar exchange rate was fixed at the level range between $ 1 Rp. 9000 s / d 10,000

Indonesia's economy in 2010 is predicted to grow 5.7 percent, higher than the 2009 that only 4.4 percent. However, growth was very dependent on short-term speculative funds, high-interest debt, and rising commodity prices. Completion problems Century bank bailout key to restoring confidence that Indonesia consistently enforce the law. "Another obstacle is the low competitiveness.

Economic growth predicted in 2010 that 5.7 percent, relatively low compared to its potential. In addition, the growth of low quality because it encouraged consumption, high commodity prices, high-cost debt, a flood of short-term speculative funds, and hot money. Export performance is expected to grow 9 percent, but only predominantly primary commodities such as oil and gas, coal, and metals.

Free trade

With the enactment of the ASEAN Free Trade Agreement, China, will be the acceleration of consumption goods imports. "De-industrialization and encourage continued growth slowing imports and raw materials. Acceleration of de-industrialization and the increasingly intense competition in the free market era of ASEAN-China will hamper recovery of various economic sectors. This is because the issue of competitiveness. "To build a competitive industry needs infrastructure improvements, building processing industry and production components, interest rates and the exchange rate do not be too strong, increase your productivity.

Indonesia's decision not to accelerate the liberalization of the economy followed by preparation for entering the competition is getting tight. In fact, all countries that have succeeded in building a competitive and productive industry, strategy and industrial policy became one of the prerequisites required. It was a reference to the major industrial development and preparation of supporting industries, which became the basis of government in a long term cooperation. "Without any reference, the sequence will occur many the wrong policy priorities. The decision put the liberalization of the financial sector, without waiting for the readiness of the real sector is one step. "Fluctuation of financial indicators will interfere with the performance of the real sector. Will Indonesia in 2010 was recovering economy? we wait the government's performance in economic recovery in 2010.

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Debt Restructuring Will Strengthen Balance Sheet Finance PT Garuda Indonesia

PT Garuda Indonesia meninformasikan that it has won the tender in the form of debt securities Floating Rate Notes is worth around U.S. $ 45 million. Purchases of securities is valued at U.S. $ 25 million. Related to this tender triumph, Emirsyah Satar, Garuda Chief Executive Officer said, in a press release Garuda Indonesia, Garuda is very pleased with the results of the tender offer. The purchase price of U.S. $ 25 million has managed to reduce debt more than U.S. $ 45 million.

This agreed restructuring will be judged significantly affect the financial balance sheet. Because the maturity will be extended until January 2018 and as a result of Garuda's financial balance will be strengthened significantly.

In this FRN restructuring, Garuda is assisted Rothschild & Son Limited's financial adviser, K & L Gates LLP as legal advisor to international, and Wiriadinata & Saleh as legal advisor to Indonesia.

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