IDX: Abundant capital inflow expected in 2012

The Indonesia Stock Exchange (IDX) is confident that capital inflow in 2012 will be more abundant along with the increase in Indonesia’s investment rating.

“Foreign funds will likely increase every year because the investment rating will encourage foreign funds to enter the country more profusely,” IDX president director Ito Warsito said Wednesday as quoted by Antara news agency.

He said foreign investment fund agencies would also pour money into Indonesia due to the psychological factor.

Ito said the IDX had recorded Rp 22.7 trillion (US$2.4 billion) in foreign funds entering the capital market through the secondary market in 2011, an 8.61 percent increase from 2010.

He added that foreign funds still entering the Indonesian capital market were proof that foreign investors had not lost confidence in it. (drs)