It is always interesting to research t he phenomen on of capital flow in a country. Some of the predicted benefits of capital inflow are the raise of domestic investment (Mileva, 2008) ; i ncrease in liqudity and reduce the cost of capital (Bekaert and H arvey, 2000) ; and also lead to promote economic growth (Ito, 1999) . However, capital inflow is also feared to be the sources of increasing probability of having lending boom (Penalver, 2003) ; increa sing liabilities in the future owed by the related countries (Eichengreen, 2006) ; and threat of capital reversal particularly in the form of porfolio investment (Ostry, et al, 2010) . Private Portfolio Liabilities (PPL) represent a measure of capital inflow (from non-resident) in the form private portfolio ownership in a period of time (annual in the graph); further term of PPL will represent this data. In case of Indonesia, during 1993 to 2011 PPL and GDP growth share almost at a similar trend, although year-by-ye...
Alam Takambang Jadi Guru