Indonesia
had experienced economic devastation that had been built through the joints of
the new order policy began crawling back construct the foundation of the
economy. International Financial Corporation (IFC) classification of
stocks linked to the classification of the state. If the country is still
classified as a developing country, the market in the country is also in a
developing stage, although market shares are fully functional and well
organized.
Developed
capital markets can be identified through a country, whether the country is a
developed country or a developing country classified. Indicator is the per
capita income of a country, which is usually included in the low to middle-
income countries. But the most striking characteristic is seen the value
of the market capitalization of companies listed, the cumulative trading
volume, the tightness of capital markets regulation, sophistication and culture
to domestic investors.
Consequences
of growing capital market is a small market capitalization value. A
measure of market capitalization ratio is usually seen from the comparison with
the value of a country’s gross domestic product. In addition to the other
consequences is the presence of thin trading volume (thin trading) caused by
trade (non – syncronous trading) on the market. Synchronous trading is not
caused by the number of securities traded not entirely, meaning that there is
some specific time in which a securities transaction does not occur (Hartono,
2003). Indonesia which is still listed on the IFC is still a developing
country with the worst investment climate in the East Asian region. Even
with a record like that, in fact we are still considered by foreign
investors. The fact that there are national companies with actually being
in the strategic sectors of the country, offered by some foreign institutions
through the acquisition of shares. The presence of capital inflows as
investments in general is foreign investment should be a booster of the macro
economy. The main reason for foreign investors to move their funds to
developing countries is that developing countries have the potential untapped
business entirely, as in the classic motifs of investment to other
countries. Michael Fairbanks and Stace Lindsay senior consultant at Monitor
Company express purpose of foreign investors coming to the poorer countries is
usually only see an opportunity to attract natural resources, cheap labor and
wages as the target product or service that is not good quality.
But
there are other reasons that accompany such motives, the striking differences
with developed countries. If we use a life cycle approach to the business
of developing countries into the category growth (growth) than developed
countries that fall into the category of ripe (mature). It means that
there is the attraction of high economic growth which of course is accompanied
by a high return anyway, because economic growth is an aggregate indicator of
industry in a country. For example, the mobile telecommunications business
in Indonesia, which explored the new solid in Java alone, while outside it
still has high potential to serve new markets.
Tenses Analyz
1. Indonesia
had experienced economic devastation (Past Perfect Tense)
2. that had been built
through the joints of the new order policy (Past Perfect Tense in passive
sentence)
3. which is usually
included in the low to middle- income countries (Simple present tense in
passive)
4. But the most striking
characteristic is seen the value of the market (Simple present tense in passive)
5. A measure of market
capitalization ratio is usually seen from the comparison with the value (Simple
Present tense in passive)
6. in fact we are still
considered by foreign investors (Simple Present tense in Passive)
7. Developed capital
markets can be identified through a country (Modal In Passive)
8. the other
consequences is the presence of thin trading volume (thin trading) caused by
trade (Simple Present tense)
9. Synchronous trading
is not caused by the number of securities traded not entirely(Simple Present
tense)
10. The main reason for
foreign investors to move their funds to developing (Simple Present tense)
