Jakarta (ANTARA News) - Recent slumps in global stock markets triggered by fears that the US is slipping into recession should serve as a warning that investors in Indonesia must be cautious, Finance Minister Sri Mulyani Indrawati said Thursday.
"It is happening globally. People around the globe are facing turbulence, so we'd better be cautious," she was quoted by AFP as saying.
The Jakarta stock exchange's benchmark composite index has lost 167.18 points or 6.1 percent this year, after gaining 52 percent last year.
Indrawati said a slowdown in the US economy would not necessarily have a direct impact on the Indonesian economy.
The US is the third-largest market for Indonesian non-oil-and-gas exports after Japan and the EU.
The government has said it is hoping demand from China and India will offset the expected weakening in demand from the US.
Indrawati said the domestic economy remains healthy, as can be seen from some strong indicators such as foreign exchange reserves, debt levels and banking sector performance data.
The government is projecting that economic growth will accelerate to 6.4-6.7 percent this year from the 6.3 percent estimated for 2007. (*)
"It is happening globally. People around the globe are facing turbulence, so we'd better be cautious," she was quoted by AFP as saying.
The Jakarta stock exchange's benchmark composite index has lost 167.18 points or 6.1 percent this year, after gaining 52 percent last year.
Indrawati said a slowdown in the US economy would not necessarily have a direct impact on the Indonesian economy.
The US is the third-largest market for Indonesian non-oil-and-gas exports after Japan and the EU.
The government has said it is hoping demand from China and India will offset the expected weakening in demand from the US.
Indrawati said the domestic economy remains healthy, as can be seen from some strong indicators such as foreign exchange reserves, debt levels and banking sector performance data.
The government is projecting that economic growth will accelerate to 6.4-6.7 percent this year from the 6.3 percent estimated for 2007. (*)
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