Stock Market Notes Record-High Capital Inflow
19 August 2014 13:48 WIB
TEMPO.CO, Jakarta – The value of foreign capital inflow to the stock market hit a record high. Indonesia Stock Exchange (IDX) director Ito Warsito said that as of until August 15, 2014, the value of foreign capital inflow to the stock market reached Rp55.5 trillion.
"If we take into account the entire capital markets—including bonds and securities, the amount totaled at Rp100 trillion," Ito said yesterday.
Ito said this is a fine achievement considering last year's capital inflow stood at minus Rp20.6 trillion.
The torrential capital inflow, Ito said, is highly related to the 2014 General Elections. The smooth-sailing process of the election—regardless of the disputes that surfaced after—and the prospect of a bettering national economy with a new government raised investors' trust in Indonesian capital markets.
Ito believes positive sentiments in the stock market will continue until the end of the year, and increases further once the new president inaugurated.
Positives sentiments, he added, will endure if the new government can create and guarantee a safe investment climate. Incentive mechanism cannot always attract investors, but guaranteed security will no doubt invite capital owners to invest.
TRI ARTINING PUTRI | DINI PRAMITA | AMOS SIMANUNGKALIT