REPUBLIKA.CO.ID, JAKARTA -- Chairman of the National Economic Committee (KEN), Chairul Tanjung said Indonesia was just waiting until the execution of tapering off.

Currently, he added, the impact of the US Federal Reserve's withdrawal of monetary stimulus already affecting Indonesian financial markets.

"The philosophy is that the tapering off is inevitable, the time [for its execution] is also getting closer," he said after attending Risk and Government Summit 2013, Wednesday (4/12).

The Fed, he said, gave a clear picture on this. One of them was in terms of employment. When unemployment was below 7 percent and growth is believed to be sustainable, then they would stop Quantitative Easing (QE). As a result there would be a reverse flow of capital to the United States.

He appealed to businessmen in Indonesian to be prepared by the termination of QE. During the four years he saw that the Indonesian economy was growing rapidly with the support of QE. But QE stimulus is only temporary. It's not a main cause of economic growth in Indonesia.

Capital flows would essentially flow to a more lucrative destination. Indonesia, he said currently was not determined as beneficial investment destination.

"Just look at our stock market. It's not ride-up, but earlier it raised like a rocket," he said.

Ed: Nidia Zuraya

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