ASEAN Single Currency, Difficult

The establishment of a single currency for ASEAN countries is difficult to be realized. Decision of the single currency requires a commitment and mutual understanding, both related to aspects of political, economic, social and cultural.

According to the Minister of Trade Mari Elka Pangestu, the decision to make the single currency raises a lot of consequences. For example, ASEAN central bank matter. Not to mention the matter of monetary policy.

"For now ASEAN is not relevant. It still takes a long time. The European Union alone took about 60 years," he said in Jakarta on Thursday (05/05/2011).

Responding to questions, the EU Trade Commissioner Karel De Gucht said, to be able to reach an agreement the single currency, Europe needs a long process. "We're still dealing with conflict, like yesterday with Portugal. For ASEAN, there are still gaps between countries members, certainly takes more time," he said.

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Choose ASEAN Japan For Partners

ASEAN countries agreed to develop together into the center of world economic growth. To that end, ASEAN chose Japan as the country's strategic partner. Although the Japanese economy is on the rise after the earthquake and tsunami, Sakura is committed to spurring economic growth in ASEAN.

Thus the results of a meeting of economic ministers of ASEAN and Japan, which was held in Kuala Lumpur last week. Japan led by Minister of Economy, Trade and Industry to bring 70 businessmen.

"They want to affirm its commitment to ASEAN is not reduced even though their economy is on the rise," said Trade Minister Mari Elka Pangestu said here on Monday (11 / 7).

According to him, the meeting discussed three important issues that ASEAN could develop into a center of world economic growth. First, acceleration of infrastructure development both hardware and software, such as physical facilities and broadband networks. Second, the elimination of non-tariff barriers as well as the equalization standard, both goods and services. Third, the reduction of exhaust emissions and the application of the concept of reuse, reduce, and recycle.

Let's say, the role of ASEAN Japan's economy is huge. "We continue to view Japan as a strategic partner in the middle of the growing role of China and India. The dialogue is clearly felt the spirit together, to meet new economic growth centers in Asia," he explained.

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First Year, Still Fingering

Although the first year of investment money poured $ 27 million U.S. dollars, South Korea's Lotte Group through PT Lotte Shopping Plaza Indonesia is still impressed by touching or looking for a shopping center concept will be launched next year. The name of the shopping center is the Lotte Department Store.

President Director of PT Lotte Shopping Plaza Chang-Suk Suh of explanation on Tuesday (07/12/2011) only in outline says that it would offer a new paradigm in the shop.

Indeed, Lotte is already signed an agreement with the Ciputra Property Tbk for leasing 130,000 square meters area in the mall Ciputra World Jakarta. The agreement lasted 20 years.

Before in Jakarta, the Lotte shopping center has opened similar in four locations namely Moscow (Russia), Beijing and Tianjin in China and in Ho Chi Minh City (Vietnam). As of 2018, Lotte Department Store in attempt to enter the ranks of the world's fifth largest shopping center outside of South Korea.

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Shutter Vietnam Food and Beverage Market

Imports of food and beverages from ASEAN countries continued to strengthen. Earlier, in 2010, the import only happens from the four countries. In the first quarter of 2011 has become the five countries that market invaded Indonesia.

Secretary-General of Food and Beverage Association of Indonesia (Gapmmi) Franky Sibarani in Jakarta, Sunday (8 / 5), said Vietnam is a country that joined the market aiming Indonesia, even the country is also increasing the volume of food and drink exports to Indonesia.

"Malaysia and Thailand are still dominant and aggressively invade the domestic market," said Franky.

According to Franky, with plans for implementation the ASEAN Economic Community by 2015, it is feared the food and beverage products from ASEAN countries will continue to increase because the governments of other countries seem to keep clean and actively enhance the competitiveness of its industry.

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Malaysia Master the Market Imports

Malaysian food and beverage products flooding the markets increasingly modern Indonesia. During the first half, Malaysia recorded as a supplier of food and drink imports to Indonesia's largest. If the competitiveness of national industries can not be addressed, the local share will be eroded by imported products.
Secretary General of the Association of Indonesian Food and Beverages (GAPMMI) Franky Sibarani, Tuesday (07/12/2011), in Jakarta, said during January to June, imports from Malaysia contributed 24.7 percent of total imports of food and beverages. Other countries are also contributing to large is China (12.9 percent), Thailand (10.2 percent), and Singapore (7.9 percent).
Imports of food and beverages during the first half of 2011 rose high enough. Based on data GAPMMI, official imports reached 112.63 million U.S. dollars, up 15.71 percent from the same period last year. Imports of food and beverages at most entered through the Port of Tanjung Priok which reached 81 percent of total imports.

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Beware of Foreign Capital Flows Back

Jakarta, Indonesia need to be aware of the reverse flow of foreign capital (capital inflow reversed) after the expiration of loose money policy (easing quantitave-QE) who applied the Central Bank of the United States.

"Indonesia's central bank needs to set up reserves in anticipation of market turmoil to dampen the money if there is a sudden withdrawal of foreign portfolio," said Merrill Lynch economist Chua Bin Rights in conversation with Reuters on Tuesday (06/28/2011).

The Fed, Federal Reserve, began applying QE years ago with the goal of accelerating the economic recovery of the country, Uncle Sam, who collapsed due to financial crisis of 2008. In principle QE done as if there's additional money the central bank. Virtual money is then moved into banking and capital markets through the purchase of assets in stocks, corporate bonds, as well as government bonds.

Step central banks do QE is not too problematic as market participants and users of government money are still believing it. The problem is when it is increasingly being done - then the value of the currency of that country will continue to be eroded quickly and harm anyone who holds it.

Right Bin said emerging market countries in Southeast Asia such as Indonesia and Thailand enjoy a swift influx of foreign capital outstanding in the last two years. "The rate of capital inflow reached four times higher than before the crisis, is worrisome. Foreign ownership of securities owned by the state government of Indonesia has reached 30.6 percent," said Bin Rights.

Indonesia reserves reaching 100 billion U.S. dollars judged strong enough to cope with shocks. Reserve was necessary to shore up the rupiah from falling too deeply in case of capital outflow in large numbers.

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