This reputation should be maintained because Indonesia in the future needs capital inflow both internationally and domesticallyJakarta (ANTARA) - Indonesia's reputation as an investment destination, particularly that of the capital market, should be maintained, Finance Minister Sri Mulyani Indrawati has said. Based on the Financial Services Authority (OJK) data, investor confidence in Indonesia's economic prospects was quite high.
"This reputation should be maintained because Indonesia in the future needs capital inflow both internationally and domestically," Sri Mulyani said in Jakarta Thursday.
The Ministry of Finance together with OJK, Bank Indonesia, and the Indonesian Deposit Insurance Corporation (LPS) will seek to build economic stability for investors.
The flow of capital into Indonesia would be able to raise the economy if all parties maintained investor confidence in Indonesia, the former Managing Director of the World Bank revealed.
Even during 2019, when the world economy was affected by a trade war, the Indonesian Composite Index (IHSG) grew positively by 1.7 percent, OJK Board of Commissioners Chairman Wimboh Santoso said speaking earlier.
The growth was moderate, with the IHSG at 6,299.5 by the end of 2019, he said.
Apart from the growth of the IHSG, the net sale of foreign investors in the stock market increased significantly by Rp50.7 trillion in 2018 to a net buy of Rp49.2 trillion in 2019 and the number of investors also increased significantly in 2019, Wimboh also said.
Also, the funds raised in the capital market totaled Rp166.8 trillion with 60 new issuers and three equity crowdfunding, Wimboh continued.
The amount was quite stable as compared to the previous year when it reached Rp166.1 trillion with 62 new issuers, he said.
"This indicates that market confidence in Indonesia from investors is still quite high," he added.
The high market confidence in Indonesia was also confirmed through a Bloomberg publication which conducted a survey of 57 global investors and traders with Indonesia's results ranked highest for investment purposes, Wimboh stated.
The achievement was also the most promising among other emerging market countries, especially investments in the stock market and debt securities, he revealed.
"This will be history if we can defeat China and India. This has never happened before," he said.
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Translator: Dewa Ketut, Azis Kurmala
Editor: Rahmad Nasution
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