Market Fluctuations Considered Fair, IDX Optimistic Foreign Investors Will Return

JAKARTA - The Composite Stock Price Index (JCI) closed down 1.53 percent to 7.830 and recorded a selling pressure from foreign sellers of IDR 1.12 trillion on Friday, August 29, coinciding with the rampant national demonstrations.

IDX Director of Trade and Member Regulation Irvan Susandy said that market fluctuations as they are currently part of a natural dynamics in the investment world and his party remains optimistic about the prospects for the Indonesian capital market.

"This is a market dynamic that I think will happen like this. But I believe with the strong fundamentals of our country, our market is good, they will come back again," he told reporters at the IDX Building, Monday, September 1.

Irvan gave an example during the MSCI rebalancing process some time ago, the market recorded a large flow of incoming funds (inflow) and this shows the interest and active participation of foreign investors.

"That's definitely because it's foreign, right? So we hope that this momentum can continue to be maintained. This is indeed the dynamics of the market, which is a momentum that continues to be positive, which we must protect," he said.

Irvan emphasized that fundamentally, the condition of the Indonesian capital market is still solid.

This is also reflected in the increasing weight of Indonesian issuers in the global index of Morgan Stanley Capital International (MSCI).

"Our country isfundamentally good, right. Actually, right now our index was also yesterday, our MSCI balance weight has increased, there is an FTSE inclusion and there is also an inclusion and the possible weight has also increased. Now this does show our market is Bagus, our country is strong," he said.

According to him, this recognition shows the confidence of global investors in the stability and prospects of the domestic capital market, and it continues to pay close attention to the development of the national security situation so as not to interfere with the momentum that has been built.

"Well, this is the dynamics that we are trying to monitor and hopefully it will not result in this good thing coming back again, yes. We hope that this will continue to improve," he said.

Irvan also said that the JCI fluctuation was a reasonable part of market movement, and during the MSCI index rebalancing process, the JCI had recorded significant inflows of foreign funds.

"So we hope that this momentum can continue to be maintained, this is indeed the dynamics of the market. But this momentum that continues to be positive is what we must maintain," he added.

Regarding the decision to continue to open trading in today's stock exchange in the midst of a national situation, Irvan explained that this was based on the belief that his party was still in good and controlled condition.

"Because we believe we are fine," he concluded.