OJK: Global Economic Stability Will Flood Action To Buy Foreign Investors In 2024

Chairman of the OJK DK Mahendra Siregar (Photo: Antara)

JAKARTA - The Chairperson of the Financial Services Authority (OJK) stated that economic stability at the global level has the opportunity to create buying or net buy foreign investors in 2024.

Chairman of the OJK Board of Commissioners Mahendra Siregar gave an example, in mid-2023 the sell-off of foreign investors was quite high, but at the end of the year foreign investors again recorded a buying action (net buy) in line with market optimism after the Fed gave a signal "dovish".

"Global conditions are considered or expected by international investors to be more stable. If it is stable, indeed, the opportunity for net buy conditions from investor residents will be higher," Mahendra said quoting Antara.

Mahendra emphasized that global economic conditions will affect the attitude of market players next year. "The global sentiment will affect how foreign buy or sell positions," said Mahendra.

However, in the midst of the hope of a net buy of foreign investors next year, he reminded that the number of domestic investors needs to be increased.

According to him, the potential for domestic investors is still large, where the number of new investors reaches 6.4 percent of the productive age population in Indonesia or 12.13 million Single Investor Identification (SID) by the end of 2023.

To increase domestic investors, according to him, the main keys are integrity, credibility, and Good Corporate Governance (GCG), and consumer protection of the entire ecosystem of Indonesian capital market players.

Foreign investors recorded net sell (net sell) worth IDR 7.06 trillion, as of December 28, 2023.

However, foreign funds have re-entered the stock market in the past month. Net buy in the past month on the regular market reached IDR 3.51 trillion, while across the market, foreign net buys reached IDR 5.39 trillion in the same period.