Investors favor short-term fixed income instruments<\/p>\n
JAKARTA (JP): Lehman Brothers Asia Limited of the United
\nStates has discovered that institutional investors in Indonesia
\nfavor short-term fixed-income instruments.<\/p>\n
Lehman Brothers' vice president and head of credit research,
\nStephen M. Taran, said in a presentation here yesterday that 61
\npercent of its respondents invested in short-tern certificates of
\ndeposits.<\/p>\n
About 51 percent of the respondents said that they also put
\ntheir investments in commercial papers, he said.<\/p>\n
Taran said the survey involved 112 institutions holding total
\ninvestible assets of US$75 billion.<\/p>\n
The survey also revealed that Indonesian investors use a wide
\nvariety of currencies. \"This indicates that liberalization of
\ncapital flows has opened Indonesia to global investment
\nopportunities as evidenced by currencies held and type of
\ninstruments used,\" he said.<\/p>\n
He said 84 percent of the 112 surveyed institutions said they
\nused the U.S. dollar, while 76 percent use the rupiah, 37 percent
\nthe Japanese yen. The Singapore dollar and the German mark came
\nan equal fourth, with 32 percent of responding institutions
\nsaying they used the currencies.<\/p>\n
Twenty-one percent of the institutions use the British pound,
\n16 percent the Hong Kong dollar and 15 percent the Australian
\ndollar, he added.<\/p>\n
Of the bond investors, 77 percent preferred to have their savings
\ninstruments denominated in rupiah, 12 percent in the U.S. dollar,
\neight percent in the yen and three percent in other currencies,
\nhe said.<\/p>\n
Rupiah<\/p>\n
Taran said the survey also showed that rupiah-denominated
\ninstruments were held by investors in 12 Asia-Pacific countries.<\/p>\n
Rupiah-denominated instruments were held by 30 investors from
\nSingapore, 22 from Japan, 18 from Australia and 14 from Hong
\nKong, he said.<\/p>\n
He said Lehman Brothers was focusing its survey on Indonesian
\ninvestors because of its liberal regulations on external capital
\nflows, rapid growth, wealth accumulation spread over a large
\npopulation and active involvement of the government in promoting
\nthe development of savings institutions.<\/p>\n
He said 48 percent of the surveyed institutions were corporate
\ntreasuries, 24 percent banks, 19 percent brokerage, leasing, real
\nestate and public sector financial institutions, six percent
\ninsurance companies and three percent investment management
\nfirms.<\/p>\n
A group of 15 professionals were involved in the survey.<\/p>\n
Lehman Brothers was the co-lead manager for the international
\nsecurities offering of PT Kalbe Farma (raising US$100 million
\nfrom its dragon bond issue), co-lead manager for PT Indosat's
\ninitial public offering (generating US$1.1 billion in capital),
\nand is an adviser to the Paiton power project in East Java. (kod)<\/p>",
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"sponsor": "Okusi Associates",
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