Jakarta: Bank Indonesia (BI) Governor Perry Warjiyo said that the flow of investment for stock portfolios over the past week have experienced a decline. He believes that this is due to the fragility of the current global economic conditions, especially from the continuing trade war between the United States (US) and China.
"The stock is indeed more volatile, moves up and down, in and out of Indonesia and especially at this time many global conditions that affect the number of foreign capital inflows into stocks," Perry said in the BI office complex, Jalan MH Thamrin, Central Jakarta, Friday, October 11, 2019.
In a week-to-date (w-t-d) until October 10, 2019, the flow of foreign capital to stocks experienced an outflow of Rp0.36 trillion. Fortunately, the portfolio of Government Securities (SBN) supports the flow of investment into Indonesia.
"If (the flow of investment) to the SBN is still positive. W-t-d the week to October 10, the SBN entered IDR3.04 trillion, while the shares came out IDR0.36 trillion so that the net w-t-d until October 10th was an inflow of Rp2.54 trillion, "Perry explained.
Overall, the flow of portfolio investment up to October 10, 2019, experienced an inflow of Rp195.5 trillion year-to-date (y-t-d). Consists of inflow to SBN of Rp140.6 trillion and inflow to shares of Rp52.9 trillion.
Perry claims these conditions still make Indonesia a destination for investors to invest their capital. Investors still have great confidence in the Indonesian economy and investment returns in the country.
Medcom.id noted the movement of the Composite Stock Price Index (IHSG) during the past week experienced a decline. At the end of the previous week (Friday, October 4, 2019) the IHSG appreciated, closing up by 22.72 points, or 0.376 percent, to 6,061. The Indonesia Stock Exchange (BEI) noted the average transaction value of shares in BEI trading increased 3.09 percent to Rp7,991 trillion during the week (30 September-4 October 2019).
Unfortunately, the rate of strengthening of the IHSG did not continue. Recorded at the close of trading on Monday, October 7, 2019, IHSG minus 60.67 points to 6,000. The consumer sector fell the most on that day. The weakening condition continued until the close of trading on Thursday, October 10, 2019. JCI was sluggish to 6,023 or down 5.52 points.
IHSG is predicted to continue to weaken in today's trading due to the lack of sentiment. Investors are still considered 'nervous' because of the conditions of the US and China trade war, although the two Superpowers are said to be starting a new round of high-level consultations in Washington to overcome their differences in economic and trade matters.