TEMPO.CO, Jakarta - The Financial Service Authority (OJK) said the Indonesian Stock Exchange (BEI) is one of the best performing stock markets in ASEAN in the first quarter of 2015.

"So far this year, the Jakarta composite index (JCI) of BEI grew 4.05 percent with capitalization rising 4.12 percent. This is one of the best in ASEAN. This is a good start. Hopefully would continue throughout the year," OJK's Capital Market Supervision Chief Executive Nurhaida said.

The highest growth in index of 9.25 percent was recorded by the Philippines, with BEI coming second with a growth of 4.05 percent, followed by Malaysia 3.44 percent , Singapore 2.56 percent and Thailand 0.35 percent.

The positive performance of BEI was attributable to good performance of the listed companies and the country's economic condition, that tended to be positive, Nurhaida said on Monday.

She said in a bid to maintain good performance of the domestic market, OJK would stick to three main principles in market deepening including supply, demand and market infrastructure.

"One factor included in the market deepening is to increase the number of products in the market either through increasing the number of companies launching initial public offering (IPO) or the types of their product such as bonds and mutual funds," she said.

He said OJK is processing plans of two companies seeking to launch IPO.

In addition, OJK has also issued guidelines for the product of assets backed securities in the form of Participation Letter (EBA SP) related to housing secondary financing.

"There is already regulation on EBA SP, PT Sarana Multigriya Financial (SMF) is in the final phase of issuing the product," she said.

Nurhaida said in order to encourage increase in the number of products, OJK is drafting a regulation to facilitate issuance of more products.

"The facility given would not be at the expense of investors. The facility offered is expected to attract more investors to the domestic market," she said.

The ultimate goal of market deepening is creating balance in the number of foreign and domestic investors in the market," she added.

The balance in the composition between foreign and domestic investors would better guarantee industrial stability amid the varying sentiments such as it is at present, she said.

"As we all know that foreign investors still dominate the number of investors in the domestic market. The role of domestic investors needs to be promoted by offering them facility to enter the market," she said.

Based on data at PT Kustodian Sentral Efek Indonesia (KSEI), a self regulatory organization of Indonesian capital market, in February 2015 , assets of local investors were valued at Rp1,341.43 trillion and those of foreign investors Rp2,002.86 trillion.

ANTARA NEWS