Rosan Says Market Perception Begins to Turn, the Rupiah and JCI Are a Test
JAKARTA - The government sees the strengthening of the rupiah and the stock market in recent days as a sign that market perceptions are beginning to improve.
The Minister of Investment and Industrialization/Head of the Investment Coordinating Board (BKPM) and Head of BPI Danantara Rosan Roeslani said that the strengthening did not come by itself. There is a series of policies, coordination of Bank Indonesia, support for swap agreements from China, and direct communication with global investors.
A swap agreement is a cooperation in the exchange of currencies between countries. This scheme can help maintain liquidity availability when the market is under pressure.
"If we do nothing, the strengthening will not happen," said Rosan at the Presidential Palace Complex, Monday, June 15.
Rosan has just reported to President Prabowo Subianto the results of Danantara's roadshow to a number of countries. In the roadshow, Danantara offered a first global bond.
As a result, investor demand reached around US$4.6 billion. The issuance value was then increased from the initial plan of US$1 billion to US$1.5 billion.
According to Rosan, Danantara met 122 investors. Many of them also invest in the Indonesian capital market. Therefore, he sees a strong relationship between government communication and changes in market sentiment.
He admitted that there was previously doubt about the Indonesian economy and government policies. However, after direct explanation, investor perceptions are said to have begun to shift in a positive direction.
Rosan also assessed that the correction of the stock market made the prices of a number of Indonesian companies cheaper. Foreign investors see it as an entry opportunity, especially for issuers with good fundamentals and dividends.
However, the market is not moving straight. Rosan reminded, daily ups and downs are normal.
The important thing now is not just to keep the graph green. The government must ensure that the policies sold to investors can also be felt by business actors, workers, and households in the country.