"Positive sentiment has started to come back to the capital market, not only in Indonesia, but also in the world. The strengthening has been encouraged by the presence of domestic investors," he said at an online press conference in Jakarta on Tuesday.
Domestic investors, particularly retail and non-resident investors, have made net buys worth Rp1.5 trillion, he informed.
"Meanwhile, in the State Securities market, up until July, there has been a net buying of Rp5.06 trillion," he added.
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However, Santoso said he believed volatility in the capital market is still high, which can be seen in the Composite Stock Price Index (CSPI), which slid once again to 5,006 points in early August, 2020.
This was due to several factors, such as the release of deflation data by the Central Statistics Agency (BPS) and investor’s apprehensions over GDP (Gross Domestic Product) data issued in the second quarter of 2020, he explained.
“It (the index) went down quite dramatically in the past day," he pointed out.
Furthermore, uncertainty will remain in the coming quarters as the COVID-19 vaccine is still at the stage of trial and testing, he stated.
“(A COVID-19) Vaccine is also yet to be found, even though several sources have managed to (produce vaccines that have reached the trial stage), but we still cannot execute it, because it still has to be tested. Uncertainty is still there," he stressed.
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