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Author: Starrob Big funky green star, 20000 posts Old School Fool Ticker Guide Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5162  
Subject: Indonesian Economic Growth Could Be Better Date: 8/18/2012 9:08 AM
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This article discusses a lot about removing fuel subsidies in order to improve the Indonesian economy. Here is the article:



"As Indonesia celebrates its 67 years of independence on Friday, questions loom on the quality of the country’s economic growth.

Indonesia is one of the few economies in the region that has been insulated from the global economic slowdown. Yet poverty, coupled with rampant corruption, remain sticking points that need to be resolved.

Bankers and industry players in Jakarta say that Indonesia’s economic growth could have expanded by the more than 6 percent rate recorded in the past few years if the government had been more aggressive in building much-needed infrastructure such as seaports, airport and toll roads. Aside from that, energy subsidy bills, which have ballooned in the past few years, could have been used to finance building projects and other needs such as education.

Suryo Bambang Sulisto, chairman of the Indonesian Chamber of Commerce and Industry (Kadin), a strong private lobby group, said that the country needs to remove energy subsidies that have curbed the country’s efforts to spur economic growth. "


cont'd

http://www.thejakartaglobe.com/news/indonesian-economic-grow...




So, if it seems so beneficial to eliminate fuel subsidies then why do the Indo politician's not do it you might ask?

Well, whenever fuel subsidies are decreased in Indonesia usually ordinary Indonesians begin to riot.....and there seems nothing more fearsome than seeing Indonesians rioting.

Indonesian riots tend to be among the most violent in the world....It makes those small disturbances in Greece look like nothing when the Indo demostrasi gets going good. Usually once a demostrasi gets out of control, many times that energy not only gets directed at the government but also gets directed towards non-indonesians with the most popular target being the Chinese but I imagine a American would get torn to pieces too.

Indo riots or Demonstrations are nothing to mess with. You hear that Indonesia people are doing a Demostrasi (Indo for Demonstration) then you stay far, far away.

Here is what a Indo Demostrasi looks like:

http://www.dailymotion.com/video/xpsqep_jakarta-demonstratio...


Governments in Indonesia have toppled in the past due to similar Demostrasi like this one.....not all the time do the Polisi maintain control.....sometimes the Polisi switch sides.


So you guys still want to invest in emerging economies? This type of stuff goes on within virtually all of what people call "emerging economies"..... usually most Americans like to remain blissfully unaware of this type of stuff but I know better.

Even within China.....most people view the chi-coms as all powerful but I believe even the Chinese government can fall similar to the once all powerful Russian communist government under Gorby.....there seem to be risks in all of these emerging economies and to be unaware of the risks might be playing with fire in many cases.

I like investing overseas.....I have a nice chunk of my portfolio in "Emerging Economies" but I do not down play the risks of a blow up.

I want to actually invest in Indonesia more....the country has excellent prospects but I am also very, very aware of things that go on in Indo.....so I will build positions carefully over time and follow things such as the fuel subsidy issue which has enough explosive firepower in the issue to possibly topple the government which seems extremely stable today...the key word being today.



Starrob
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