UNAIR NEWS 鈥聽Lecturer of Faculty of Economics and Business (FEB) 东京热 () Dr Rossanto Dwi Handoyo SE MSi PhD has his view about the increased interest rates in America (The Fed) followed by an increase in Indonesia (BI).聽In this regard, he mentioned several examples of safe investments to save the macroeconomy.
Some of them are holding foreign currency, stocks, property, gold, and聽聽(debentures).聽On this matter, Rossanto emphasized that each investment has its pattern.
Asset games
In his opinion, it is better to avoid foreign currencies because the rupiah is depreciating by 7 to 8 percent, affecting the dollar exchange rate in the foreign exchange market.聽The trigger, investors are buying a lot of dollars, causing the rupiah to weaken.聽Likewise, with stocks, not all stocks are good, but some are聽negative.聽鈥淚f there are foreigners investing shares in Indonesia but the profit is less than 7-8 percent, it means a loss, so investors will look for other alternative assets,鈥 explained Rossanto.
Furthermore, home properties are now sluggish because purchases don鈥檛 react quickly. Without a doubt, Rossanto assessed that the aggressive increase in interest rates also affected rising property prices.
Therefore, for now, one of the least risky assets is gold. 鈥淭he safest asset is gold, the price of gold will rise and quickly be converted to money. When interest rates go up, the selling price of gold goes down, which drives people to transfer their asset ownership to gold,鈥 he said.
Effect of bonds
Rossanto added that bonds or debentures also received a significant influence from the increase in BI interest rates, including state sharia bonds or state sukuk, which provide benefits with a profit-sharing system. In that case, an increase in the BI interest rate will result in an increase in deposit (savings) rates. It means that interest rates on loans and bonds have also risen, including the country鈥檚 yield rate. Moreover, investor confidence in issuing state bonds and sukuk is still very good.
鈥淚f you keep interest rates the same鈥.well, it鈥檚 likely that no one will want to buy. Even though bonds in Indonesia are in the safe category, because the Indonesian government is always on time in paying off principal and interest,鈥 said the FEB UNAIR lecturer.
Indonesian government issuing bonds are not without reason, he continued, the Indonesian government鈥檚 steps in issuing government bonds and sukuk also took into account market conditions and the need for debt funds.
鈥淭he US government鈥檚 debt is much bigger than Indonesia鈥檚, which is 120 percent of the Gross Domestic Product (GDP). The Indonesian government still has credibility so that it can give investors confidence,鈥 he said.
In the end, Rossanto hopes that the government has the fiscal capacity to support social safety nets. 鈥淭he people are like that too, with the rising food prices, it鈥檚 best to reduce things that are consumptive in nature and start to be literate about investment,鈥 he said.
Author: Viradyah Lulut Santosa
Editor: Khefti al Mawalia
