Yopie Hidayat (Contributor)

Yopie Hidayat

Contributor

Yopie Hidayat (Contributor)

Yopie Hidayat

(Contributor)

The lesson from Turkey is clear. Central bank’s independence is the anchor of market confidence. If Indonesia does not want to share the same fate as Turkey and lose its credibility, the government needs to immediately figure out, one way or another, how to reduce its budget deficit.

Inflation in the US, which might trigger an interest rate hike by the Fed and reduced liquidity injection, is becoming the biggest fear of emerging markets, including Indonesia. Investor’s money which has been anchored here might just return home, in great numbers and fast.

YOPIE HIDAYAT, Contributor

Indonesia has been included by HSBC analysts as one of the four emerging markets that are most vulnerable should the global financial market fall into panic, alongside Brazil, Mexico and South Africa

Central banks indeed have rescued the capitalist, financial asset owners and investment management institutions, but they have not helped the ordinary businessmen in the real sector that must fight for their daily life in the streets.

Yopie Hidayat, Tempo's contributor

Yopie Hidayat (Contributor)

Yopie Hidayat (Contributor)