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Jakarta Post

Despite bleak outlook, foreign investors flock to Indonesian stock market

  • Riska Rahman

    The Jakarta Post

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Jakarta   /   Mon, August 19, 2019   /  02:54 pm
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Employees pass a stock price display at the Indonesia Stock Excgange (IDX). The inflow of foreign funds into Indonesian stocks continues to increase despite the country's sluggish economic growth.(Antara/Sigid Kurniawan)

The inflow of foreign funds into the Indonesia Stock Exchange (IDX) remained high in the past few weeks despite the country’s bleak economic outlook as seen in the country’s weak export performance and sluggish economic growth. Analysts believe that many foreign fund managers entered the local stock exchange to benefit from the low share prices. The share prices on the IDX are relatively stagnant this year with the Jakarta Composite Index (JCI) rising only 1 percent year to date on Friday. The slowdown in the global economy as the result of the escalation of the trade war between the world’s two giant economies, the United States and China, would continue to affect Indonesia’s foreign trade. Exports declined by 5.12 percent year-on-year (yoy) in July to US$15.45 billion, while imports fell by 15.21 percent yoy to $15.51 billion.  The fall caused Indo...