Monday, 10 May 2010

The Jakarta Post

First quarter growth of 5.7 percent is an indicator that Indonesia economic fundamentals remain strong, and investors should not worry about economic prospects, says Danareksa Research Institute economist Purbaya Yudhi Sadewa.

"The GDP growth in the first quarter showed that economic fundamentals remain strong. Investors in the stock market should not panic despite the minister is replaced," he said Monday.

Finance Minister Sri Mulyani Indrawati will move to the World Bank on June 1 as a managing director, the second-highest position in the bank, just under President Robert Zoellick.

JP Morgan analyst Sin Beng Ong said Indonesia's economic fundamentals were "very strong" despite Mulyani's departure. "Too early to say the reform is stopped. Indonesia is still in very good hands," he said.

But "the market is taking a wait-and-see approach", he added.