Indonesia's central bank urges investors to not over-react to Dubai World's case

16:32, November 30, 2009      

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The Deputy Governor of Bank Indonesia, the central bank, Budi Mulya on Monday urged investors in the country's bourse to not over-react on the Dubai World's case.

He said that the case would not impact to Indonesia's market.

"Don't over react it because this is not a default case. Compared to (the U.S. investment bank) Lehman Brothers, this is obviously different. Lehman's case is systemic because its basic investment is unclear derivative while Dubai World's basic investment is very real. The case was triggered by decreasing property price which impacted to credit it handles," Budi told the press at the parliamentary building.

He added that so far, investor's reaction is still normal.

"All authorities from Asia, Europe and the Middle East stay alerted. They all prepare them selves to mitigate the possible negative impact," he said.

Recently, Dubai World submitted a standstill on its debt repayment worth 60 billion U.S. dollars to the next six moths.

Dubai World is an investment company that manages and supervises a portfolio of businesses and projects for the Dubai government across a wide range of industry segments and projects that promote Dubai as a hub for commerce and trading.

Source: Xinhua
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