Mark Mobius practitioners and experts in the international investment industry argued that the introduction of foreign investors into the market of course serves as a catalyst, which encourage local investment. Foreign capital entry into certain countries allow businesses in the country to grow at a rate faster than if only mobilize domestic resources.
Only cash flows from investment portfolios are often concerned only the flow of hot money from other countries. Flows are often known as the capital of this fight is viewed by government as a speculative investment, are unreliable and tend to be full of activities to take profit (profit taking) in the capital market. At a later stage funds, as this will cause instability in the domestic economy.
The problem that has always been a scourge in the stock market has actually voiced by many economists, and regulatory practitioners in the industry. It's just that we just like to hear the information coming from out of left ear right ear. The problem is to create a quality flow of investment funds is not the quantity of flow of funds. The quality of investment is the amount of funds invested over the long term that is used to construct the real sector.
Is simply to maintain a stable macro economy (eg inflation, economic growth, etc.), one way to make it happen is by creating a system of fair and competitive market. Competitive and fair means that there are no beneficiaries in excess due to the biased information and vice versa. As an example of extortion are rampant in our country are performed by actors who netted in a particular syndicate, to pay these charges, for example, the company facilitated the licensing arrangement rather than a company that does not do that. Illegal fees also contain a high price uncertainty because there are no clear standards and conducted illegally. Illegal fees can be categorized as a cost burden due to the risks that cause higher production costs.
Douglass North argued many transaction costs associated with the overall economic performance, the lower the transaction costs of a country will experience more economic growth can be maintained. Specifically, Gayle P. W. Jackson in his article entitled Government for Modern Markets suggests that to reduce the uncertainty due to transaction costs can be done with the cover, a clear system of ownership, the use of standard, wide and increasing resources, regulators stringent, having a data base and ensure the smooth dissemination of information resulting in competitive climate to reduce asymmetric information.
The role of government as regulator function is not quite as sophisticated as any restrictive regulations and if not done with the consciousness (awareness) is high for sure will go next half and each actor will always find a gap of regulation. The Government should also be a role as a guarantor that provides assurance to both domestic and foreign investors. Economic assurance is not enough, the government must somehow be able to give legal certainty and the certainty of political conditions. Because the two factors are also closely related to cultured human resource factor.
Utopian trinkets that had been used as a massive campaign by the government should start to really run. The hope is that the effect can seep down (trickle-down effect) is to change the culture, behavior and the behavior of government that gives moral support to the community. But this is not necessarily able to succeed on its own, the government also must be able to guide people to dare to be a domestic invetor resulting in a movement from bottom to top (bottom up).
Capital markets such as these have a tendency to higher return but higher the risk. Momentum flow of foreign funds during the time that adorn the Indonesia capital market should also be welcomed by the domestic flow of funds to be able to increase the market capitalization. In this way, the role of capital markets as the driving wheel of development and enhancing the welfare of society can be realized. The capital market is not only controlled by one or two groups only, but is an integrated system to move together between government, business, and society.
Only cash flows from investment portfolios are often concerned only the flow of hot money from other countries. Flows are often known as the capital of this fight is viewed by government as a speculative investment, are unreliable and tend to be full of activities to take profit (profit taking) in the capital market. At a later stage funds, as this will cause instability in the domestic economy.
The problem that has always been a scourge in the stock market has actually voiced by many economists, and regulatory practitioners in the industry. It's just that we just like to hear the information coming from out of left ear right ear. The problem is to create a quality flow of investment funds is not the quantity of flow of funds. The quality of investment is the amount of funds invested over the long term that is used to construct the real sector.
Is simply to maintain a stable macro economy (eg inflation, economic growth, etc.), one way to make it happen is by creating a system of fair and competitive market. Competitive and fair means that there are no beneficiaries in excess due to the biased information and vice versa. As an example of extortion are rampant in our country are performed by actors who netted in a particular syndicate, to pay these charges, for example, the company facilitated the licensing arrangement rather than a company that does not do that. Illegal fees also contain a high price uncertainty because there are no clear standards and conducted illegally. Illegal fees can be categorized as a cost burden due to the risks that cause higher production costs.
Douglass North argued many transaction costs associated with the overall economic performance, the lower the transaction costs of a country will experience more economic growth can be maintained. Specifically, Gayle P. W. Jackson in his article entitled Government for Modern Markets suggests that to reduce the uncertainty due to transaction costs can be done with the cover, a clear system of ownership, the use of standard, wide and increasing resources, regulators stringent, having a data base and ensure the smooth dissemination of information resulting in competitive climate to reduce asymmetric information.
The role of government as regulator function is not quite as sophisticated as any restrictive regulations and if not done with the consciousness (awareness) is high for sure will go next half and each actor will always find a gap of regulation. The Government should also be a role as a guarantor that provides assurance to both domestic and foreign investors. Economic assurance is not enough, the government must somehow be able to give legal certainty and the certainty of political conditions. Because the two factors are also closely related to cultured human resource factor.
Utopian trinkets that had been used as a massive campaign by the government should start to really run. The hope is that the effect can seep down (trickle-down effect) is to change the culture, behavior and the behavior of government that gives moral support to the community. But this is not necessarily able to succeed on its own, the government also must be able to guide people to dare to be a domestic invetor resulting in a movement from bottom to top (bottom up).
Capital markets such as these have a tendency to higher return but higher the risk. Momentum flow of foreign funds during the time that adorn the Indonesia capital market should also be welcomed by the domestic flow of funds to be able to increase the market capitalization. In this way, the role of capital markets as the driving wheel of development and enhancing the welfare of society can be realized. The capital market is not only controlled by one or two groups only, but is an integrated system to move together between government, business, and society.
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