REPUBLIKA.CO.ID, JAKARTA -- Asian investors are required to invest in Asia. Asian Development Bank (ADB) saw that Asian investors were prefer to save funds in United States (US). Head Office of Regional Economic Integration in ADB, Iwan Jaya Azis said that US investors re-invested the fund in Asia making high transaction costs.

"Asia has high liquidity. Unfortunately, these funds are invested in treasury form in US," Azis said recently as reported by Satya Festiani.

Azis said that government should create good investment environment to attract Asian investors through standardization. ADB will make standardization among Asian countries, such as in Asian bond market initiative in ASEAN+3 countries. It aims to encourage 13 countries to invest one another.

The Federal Reserve has reduced its monetary stimulus up to 55 billion USD per month. The Fed governor, Janet Yellen signaled that she would raise interest rates six months after the completion of monetary stimulus. It is estimated to trigger war of interest rates in developing countries, including Indonesia.

Minister of Finance, M Chatib Basri said that government had prepared several steps. Government and Bank Indonesia (BI) have anticipated a tightening of fiscal and monetary policy.

"We are ready to anticipate it since the beginning. There was turmoil in financial markets due to monetary policy adjustment in developing countries," Basri said.

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