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Indonesia to tap fortune from U.S. fiscal cliff deal: economist

English.news.cn   2013-01-03 14:38:42            

JAKARTA, Jan. 3 (Xinhua)-- An Indonesian economist said Thursday that the fiscal cliff deal recently approved by U.S.' House of Representatives would bring positive impacts to global economies including Indonesia. "For Indonesia, the positive impacts would be transmitted through stock market as the market and the currency exchange rate would be improved as dollars from the United States flow into emerging markets,"said Ryan Kiryanto, an economist at Indonesia' s state bank of BNI.

He said from the trade aspect, Indonesia would be benefited in its export to U.S. from the deal as it would eventually improve the country's terms of trade. "It would be better for Indonesian exporters to find out the commodities needed in U.S. They should also identify potential markets from US'economy partners,"he said.

On the other hand, government is advised to take anticipating moves due to the possible flooding of U.S. investments in emerging markets, including Indonesia.

One of the issues that the government must pay high attention to is the settlement of labor issues, he said.

After being approved by U.S. parliament, the fiscal cliff measures-- cutting spending and increasing taxes dramatically -- came into effect automatically at midnight on Monday when tax cut scheme set in U.S. since George W Bush administration expired.

The Jan. 1 deadline triggered tax increases of about 536 billion U.S. dollars and spending cuts of 109 billion U.S. dollars from domestic and military programs.

Editor: Zhu Ningzhu
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