As the US, financial crisis has now spread to Europe, the oil-rich countries such as Saudi Arabia, Kuwait and Arab Emirate which have accumulated hundreds of billion of Dollars in their foreign reserve, are now reviewing their holding or investment vehicle. They are looking for more diversified investment outside the US and Europe.
Because of unfavorable political developments in Thailand and Malaysia over the past few months, Indonesia which has largely Muslim population could become one of these oil-rich countries' favorite place for foreign direct investment. That wil be true if the conditions, legal and market infrastructures are conducive for Islamic financial instruments.
The government had improved the legal framework with the recent actment of laws on sharia banking and bonds. The long term nature of Islamic bonds could make them the most suitable investment instrument for Indonesia, as these bonds grant an investor a share in an asset along with the cash flows and risks commensurate with such ownership.
The financial crisis that has gripped the globe and weakening economic growth in the rest of the world will serve to the government to accelerate the investment reform measures in order to grab the hidden opportunity in the global crisis. (Simplified from the jakartapos.com on Oct 9)
NOTES ON Generic Structure:
• Paragraph 1 is THESIS. It introduces the topic of the text which state the potential opportunity behind the glogal financial crisis.
• Paragraphes 2 and 3 are the ARGUMENTS which support to the opinios stated in the above thesis.
• Paragraph 4 is REITERATION which restates the thesis in another phrases to point the writer'opinion.