Companies in Indonesia are still developing well."Jakarta (ANTARA News) - President Director of Indonesia Stock Exchange (IDX or BEI) Tito Sulistio has expressed concern over the negative psychological impact of the Greek crisis on investors.
"The current condition in the capital market, which tends to be uncertain, is believed to be caused by Greece. The Chinese stock market has dropped around 30 percent. To me, this is what we fear," he stated here on Tuesday.
He believes that the Greek crisis will only have a short-term impact on the investors at home, as the performance of listed companies is still relatively positive despite an economic decline.
"Companies in Indonesia are still developing well. Many of them could still meet their targets. I believe that as long as their fundamentals remain strong, the impact of the Greek crisis would be short term," he emphasized.
To maintain strong fundamentals, Tito hoped that the government would continue to increase spending on infrastructure development and on maintaining banking credits, so that economic activities would continue unhindered.
"Infrastructure development at home will have a positive psychological impact on investors to continue to invest in Indonesia despite the Greek crisis and the Feds plan to increase its rate," he remarked.
Tito was also optimistic that the government would help maintain the capital market industry by encouraging state-owned companies to release some of their shares to the public through an initial public offering, among others.
"This will make the capital market stronger, so that investors are attracted to invest in the market. The situation will certainly help to increase the demand for the rupiah," he noted.
(Reporting by Zubi Mahrofi/Uu.H-YH/INE/KR-BSR/A014)
Editor: Priyambodo RH
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