A Flood of Foreign Funds

Foreign funds are flowing fast into the domestic capital market. Investing in Indonesia provides higher returns than in other ASEAN member countries, but these short-term funds have the potential of being withdrawn at any time.

August 18, 2009

THE New York Stock Exchange was nervous at the beginning of last week. Worried investors were waiting for a decision from The Federal Reserve rather than selling off their financial sector shares. The share price index at the stock exchange in Wall Street, New York, USA, also weakened. At the close of trading on Tuesday last week, the Dow Jones Index had been corrected by 96.5 points to become 9,241.45. Other indices such as the Nasdaq also fell.

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