TEMPO.CO, Jakarta - Ito Warsito, president director of the Indonesia Stock Exchange (IDX), is confident that Indonesia's capital market will have a bright outlook in October; when a new administration takes its seat in the palace. A new government, he said, will bring new policies that will boost the economy and push the growth of listed companies' shares.
The prospect is indicated by the increasing interest from foreign investors in Indonesia's capital market. "On a year-to-date basis, foreigners have drawn in Rp54 trillion," Ito said after opening the 2014 Investors' Summit and Capital Market Expo in Jakarta, yesterday.
According to Ito, the value is a new record in the history of the Indonesian capital market. Last year, capital inflow was recorded at minus Rp20.6 trillion. This year, the Jakarta Composite Index (JCI) also managed to set a new record of 5,262 bps. "The stock index has gained rapidly," he said.
To date, foreign investors hold some 64 percent of the shares traded on the IDX floor. Although the number is still high, it has decreased from 2008's 70 percent.
FAIZ NASHRILLAH | DINI PRAMITA