LONDON: A concerns that widespread Greece debt crisis may significantly affect Asias investment direction including Indonesia echoes.Greece debt crisis in general has influenced financial condition of Euro-zone countries, said Managing Director Head of Equities, Europe & Middle East Daiwa Capital Markets Europe Limited, Meurig Williams.This condition affects investments direction although Asia so far continues to develop, he said amidst Road Show Best Indonesia 2011 in London and New York 11-15 July.This road show is held by Daiwa and Indonesia Stock Exchange particularly by partnering with seven listed companies to be introduced to European investors.Personally, Williams perceived such debt crisis to recover soon as International Monetary Fund (IMF) has provided one third of bailout for Greece, Ireland and Portugal.International rating agency, Moodys Investors Services has reminded Greece over default risk. Most parts worry that this condition may disadvantage European countries and put Portugal and Ireland in even worse condition.It is hinted that this crisis may spread further to Italy and Spain whose economic scale are larger than Greece.However, Williams perceives most investors to still have positive perspectives over Asia investment as the most important thing is the stable economic growth. Asia is still able to rely on its investment portfolio primarily in telecommunication, consumer and utilities sectors. These sectors are rather appealing for European future investors.Responding to the question on the impact of European debt crisis to Asia investment, Deputy President Director of PT Bank Negara Indonesia Tbk, Felia salim said, Every region has its own way to grow.The European crisis in fact has dragged down Jakarta Composite Index by 57.57 points or 1.45% to 3,938.05. Foreign investors recorded IDR231.607 billion net sale, making all sectors slumped particularly mining sector whose drop nearly reached 2%.Domestic market dropped on psychological impact attributed by declining regional market, in respond to European crisis.Initially, Italy is considered safe, yet, it is finally suppressed. When crisis hits European financial sector, it must be observed how far it takes up the liquidity invested in emerging markets, including Indonesia, he said.Economic slowdown of developed countries such as US or European countries triggered financial agencies to allocate investment fund into countries with rapid growth such as China, India and Indonesia.Supposes the crisis continues, emerging markets may be hit by another psychological level exactly as in 2008 when US liquidity was withdrawn from global market. This influences the psychological condition of our market player, said Alfatih.Investment Specialist of PT Manulife Aset Manajemen Indonesia Putut Endro Andanawarih viewed that thats a fair correction.Greek has already pocketed bailout bolstering strengthening index in the last weeks. In fact, the debt crisis in Europe isnt simple that is anticipated by the market with corrections since yesterday, he explained.In addition, the correction can be also benefited to valuate share prices that are going back to low level. Therefore, investors can start to recollect shares having great potency.Redemption programResponding on the concern of contagion of the Greek crisis to other countries, 17 euro members had published an agreement on regulating a European stability mechanism for long term.The agreement regulates a provision of US$700 billion (500 billion euro) bailout for members facing a debt crisis. Later, there are permanent regulation that will be issued in mid of 2013.The regulation will be release after formalizing an institution of European Stability Mechanism (ESM). While waiting for the regulation issuance, the financial ministers of euro-zone countries had created a deal for short-term redemption program.Wholly, the members of ESM are British, Belgium, Germany, Estonia, Ireland, Greek, Spain, France, Italy, Cyprus, Luxembourg, Malta, Netherland, Austria, Portugal, Slovenia, Slovakia, and Finland.The agreement had been created through a 9-hours meeting of 17 finance ministers of all members in euro zone located in Brussels, Belgium, yesterday. They discussed a new strategies to end the monetary crisis which has occurred for 21 months.Stated in the agreement, members of ESM that are facing a crisis can propose a bailout request to financial representative of Governor Board of ESM.For supervising the economic condition, and the bailout disbursement, ESM keeps coordinating with European Central bank and IMF.As quoted by Bloomberg, an economist of Bank of Tokyo Mitsubishi UFJ Ltd Chris Rupkey assessed that the meeting of finance ministers of Europe created a possibility for bond buyback action in order to decrease Greeks debt and to avoid default. (18/Arif Gunawan S./Diena Lestari/Aprilian Hermawan) (t01/t02/msw)

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