JAKARTA (TheInsiderStories) – Financial Service Authority (FSA) hope the direct investment go to Indonesian financial market could reached Rp190 trillion (US$13.38 billion) in this year, said the senior official yesterday (09/11). Until today, total funds enter the domestic market worth of Rp130 trillion.
Chairman of FSA Wimboh Santoso told media, that his office will continue to work hard to attract more companies go public, issue bonds and other instrument to boost the direct investment enter the market. The ways that FSA, government and Bank Indonesia (BI) will do are create conducive market, rise the ease of doing business, produce friendly policies and incentives.
Then, the government will also facilitate the licensing of companies going to initial public offering (IPO) and also facilitate companies to get projects so the financing needs of the capital market also increase. He adds, “The government is also multiplying supporting instruments to increase the number of companies that will issue shares or bonds.”
Based on FSA data, 45 Indonesian companies are ready to conduct an IPO in this year. In 2018, as many as 58 companies have conducted IPOs with fund raising of Rp16.42 trillion.
CEOWORLD reported, currently Indonesia ranked fourth investment destination countries in 2019 with an investment score and doing business of 84.4. The score was measured by 11 factors such as labor, investor protection, infrastructure, taxes, quality of life, bureaucracy, and technological readiness.
The country’ economic stability had a score 53, government policy with score of 82, and skilled workers were given score 56. Then, the institutional framework scored 50, research and education was 81, market potential was 61, and trade openness was 54.
Previously, Head of Investment Coordinating Board, Thomas Trikasih Lembong, said that investment realization throughout the first semester of 2019 reached Rp395.6 trillion (US$28.26 billion), up 9.40 percent compared to 1H 2018 of Rp361.60 trillion.
He said, that this investment originating from domestic reached Rp182.8 trillion and foreign investment realization reached Rp 212.8 trillion. This result absorbs Indonesian workers up to 490,715 people.
Lembong noted that investor confidence in Indonesian market was supported by external sentiment, namely US-China trade war tension. From the internal side, domestic political stability began to be felt after Presidential Election announcement.
“A year before election is certain to slow down, then after that it grows or recovery. Economic stability is increasing, “ said the chairman.
Five countries investing in IH of 2019 are Singapore $3.4 billion, Japan $2.4 billion, China $2.3, Hong Kong $1.3 billion, and Malaysia $1 billion.
Written By Staff Editor, Email@TheInsiderStories.com