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IDX records all-time high market capitalization ahead of tax amnesty
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The trading floor of the Indonesia Stock Exchange (IDX) in Jakarta. (thejakartapost.com/Wienda Parwitasari)
T
he Indonesia Stock Exchange (IDX) recorded an-all high market capitalization of Rp 5.6 trillion (US$427.6 billion) on Wednesday, which is deemed to be the result of positive sentiment from the government's tax amnesty program.
IDX president director Tito Sulistio said the new market capitalization surpassed that in several ASEAN countries such as Malaysia (US$402 billion), Thailand (US$400 billion) and the Philippines (US$285 billion).
"The stock exchange has felt the positive impact of tax amnesty. Last week, we recorded an all-time high in daily transactions, beating other ASEAN countries," he said in a hearing with the House of Representatives Commission XI overseeing finance and banking on Thursday in Jakarta.
The IDX saw a spike of 377,000 a day in the frequency of transactions, compared to Singapore's 74,000 and Malaysia's 163,000, he explained.
Tito expressed optimism that IDX market capitalization would reach Rp 5.9 trillion by the end of 2016. Last year, the IDX recorded an Rp 5.5 trillion market capitalization.
The government’s tax amnesty program is predicted to boost liquidity in the Indonesian capital market as some of the expected multi-billion repatriated assets flood into it. The government started to run the program on July 18. (ags)
