Monday, 28 January, 2008 | 12:58 WIB
TEMPO Interactive, Jakarta: Compared to investors in other countries, investors in Indonesia are extremely optimistic that the US economy, which is now sluggish due to the sub-prime mortgage crisis, will improve soon.
The optimism of Indonesian investors is also reflected in the ING Investor Sentiment Index released by ING - a Dutch financial institution, last week in Hong Kong.
Out of all Asian investors surveyed by ING, as much as 37 percent of Indonesian investors are optimistic that that the US economy will improve soon.
On the other hand however, investors from Japan, Malaysia and Taiwan are less optimistic, with percentages of 13 percent, 12 percent and 11 percent respectively.
The survey also showed that the sentiment of investors in Indonesia toward the capital market is still very positive.
Out of 100 investors, only seven percent of investors said that their investments in the Indonesia Stock Exchange (ISX) would be influenced by the sub-prime mortgage crisis during the next three months.
Most of them (73 percent) said they believed that investing in the capital market was still profitable.
Robert Scholten, PT ING Securities Indonesia's President Director, said that the enthusiastic Indonesian capital market and other fast-developing key sectors such as infrastructure, natural resources, property and finance, have made investors even more certain and confident as regards investing.
“With this positive condition, the capital market will later on become one of the major contributors to Indonesia's economic growth,” said Scholten in a press statement.
According to Scholten, this year the investors' sentiment will be pushed by the same domestic factors as last year.
However, the decrease in the global market's sentiment had the potential to increase negative impacts over interest in investing and will support a conservative investment approach.
Several observers are still certain that Indonesia can still survive the threat of an American recession.
Avilliani, an economic observer from the Institute for Development and Finance (Indef), said that there will not be a financial crisis in Indonesia this year.
The indicators are that the Rupiah exchange rate is still quite stable and a lot of capital inflows are still entering Indonesia.
She said she was more concerned over a possible crisis in the real sector, as base commodities' prices could soar as public purchasing power is low.
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