BEI Still Performing Well

JAKARTA, KOMPAS.com - The Indonesia Stock Exchange (BEI) is still performing well despite the current world economic slowdown as evident from the amount of investments in stocks.

BEI president director Ito Warsito said here on Monday the global crisis had not reduced investors interest in trading at the BEI. He said total investment in the domestic stock exchange in 2011 reached Rp18 trillion.

"This year the value of investment in the domestic stock exchange reaches almost Rp18 trillion with a rising trend," he said.

He said global investors have a long-term view and therefore they still believe trade in Indonesia would remain good despite current global crisis.

"The view that foreign investors invest for a short-term is wrong. The proof is foreign investment keeps increasing every year."

Although the trend of investment in the domestic stock exchange is rising Ito would not tell the total value of foreign investment that came to Indonesia.

"Let us just see until the end of the year. What is clear is they keep coming and going because they still wish to do business in Indonesia."

Ito said the country’s share market remained positive with an average value of daily transactions rose to Rp5.1 trillion this year compared to Rp4.8 trillion in the previous year.

"We are still within a positive territory and we can survive."

Analyst from the Milenium Danatama Sekuritas Abidin said Indonesia’s economic fundamentals which are positive are believed to be able to withstand current global economic crisis and so foreign funds would still come to the country.

"Analysists have projected Indonesia’s economy would still grow 6.5 percent despite global crisis and the conditions provide a positive sentiment for local traders."