Illustration. (CNN Indonesia / Hesti Rika).

Quite Competitive, Capital Admission Flow Reached IDR 154 Trillion as of June 2019

Estella Claudia
Market & Investment
Stocks & Bonds
Jun 29, 2019
2047
Jakarta, Indonesia - It is reported by Bank of Indonesia (BI) that as of June 27, 2019, the flow of foreign capital entering Indonesia reached IDR 154 trillion. On Friday (6/28) Deputy Governor of Bank of Indonesia, Dody Budi Waluyo stated that, the two most dominant instruments in bringing in capital inflows to the economy were SBN and shares.

Dody said that, the capital inflow of IDR 90 trillion came from the issuance of Government Securities (SBN) and IDR 60 trillion from shares.

Coordinating Minister for Economic Affairs, Darmin Nasution previously said that, the current economic performance showed positive signs because it was able to grow 5.07 percent until the first quarter of 2019 and was offset by an inflation rate of 3.23 percent, making the positive income for Indonesia.

He also mentioned that, business people considered the investment climate in Indonesia to be better along with improvements in Indonesia's competitiveness and debt rating as this is reflected in the increase in credit rating by agencies that Indonesia has entered an Investment Grade and has improved.

According to him, this was helped by the improvement of the business climate through the OSS system and other licensing simplifications, vocational education and training, tax incentive facilities, and export-based industries that came to Indonesia.

Meanwhile, the large amount of capital flows from stock purchases occurred because investors saw the prospect of improving the Indonesian economy in the long run.

Economic growth with projections that are still quite good in 2019 also become one of the reasons why the investors are interested to invest in a large inflow in terms of stocks in Indonesia.

Source: https://www.cnnindonesia.com/ekonomi/20190628185758-78-407435/arus-modal-masuk-per-juni-2019-capai-rp154-triliun

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