Bapepam-LK confident RI`s capital market to keep growing

Bapepam-LK confident RI`s capital market to keep growing

Nurhaida. (ANTARA)

Jakarta (ANTARA News) - Capital Market and Financial Institution Supervisory Board (Bapepam-LK) Chief Nurhaida said she was optimistic the country`s capital market would continue to grow despite the current global crisis.

"We are optimistic the capital market will continue to grow although the current global conditions are not conducive. The capital market still gets support from the domestic economy that continues to grow and being marked by issuers` positive performance," she said in her speech at an Investors` Summit 2011 here on Wednesday.

She said there are three factors that make her remain optimistic namely Indonesia`s strong economic fundamentals, good issuers` performance and increasing number of domestic investors.

"Bapepam-LK as a regulator will play a role as a mediator for the development of the existing potentials with supply coming from issuers and demand from investors," she said.

She hoped the development of the capital market would also get support from domestic investors to increase transactions. She also hoped market players would also build a synergy to take existing investment opportunities.

Regarding the investor summit which was organized by the capital market authorities., Nurhaida said it would help promote investment in the capital market.

The event was part of the 34th anniversary of the re-activation of Indonesian capital market.

The Indonesia capital market (BEI) director, Ito Warsito, said the theme of the summit which is "Investing in Capital Markets: Journey to a Better Future", was deliberately chosen with a view that investment is a journey for a long-term goal.

"Do not buy tomorrow and sell tomorrow. Investment in the capital market is a long term investment," he said.

Regarding current drop in the BEI index Ito said it was still normal compared to that of other exchanges in Asia.

"In the future the BEI index has a chance to rise in line with the domestic economy which is still on track," he said.

He said Indonesia`s economy would still grow and remain to be the destination place of foreign investors in the midst of current global economic conditions.

Developing countries including Indonesia are profitable places for investment by foreign investors in the midst of economic slowdown in the US and Europe.

"Foreign investors will never ignore Indonesia because Indonesia`s economy is growing. This will be a positive sentiment for the BEI index," he said.