Jamsostek won't cut investment in stocks<\/p>\n
Rendi A. Witular, Jakarta<\/p>\n
Despite huge losses in the country's stock market lately due
\nto the unfavorable global economic environment, state-owned
\nsocial security firm PT Jamsostek has said that it will not
\nreduce its current allocation of investment in the stock market.<\/p>\n
Jamsostek investment director Samuel Tobing said on Wednesday
\nthe company would not revise its investment allocation for the
\nstock market this year at around 8 percent of the company's
\ninvestible funds on optimism that the bourse would eventually
\npick up.<\/p>\n
\"There is a negative sentiment right now in the market, but I
\nbelieve it is just temporary because the fundamentals of our
\nbourse remain strong,\" said Samuel after a hearing with House of
\nRepresentatives Commission VII for social affairs.<\/p>\n
With an 8 percent allocation, Jamsostek investment in the
\nstock market is estimated to reach about Rp 2.1 trillion (US$223
\nmillion) this year, compared to the company's investible funds
\ncurrently reaching in total of Rp 27 trillion.<\/p>\n
With such a huge amount of funds, Jamsostek is the only local
\ninstitutional investor able to move the Jakarta Stock Market.<\/p>\n
The stock market has lost more than 11 percent in the last
\ncouple of months due to various negative issues globally and
\ndomestically, such as the U.S. rate-hike plan, China's policy to
\nslow the pace of its overheating economy and concerns over
\nsecurity conditions at home ahead of the July 5 presidential
\nelection.<\/p>\n
The Jakarta Composite Index closed unchanged on Wednesday at
\n707.887 on volume of 1.20 billion shares worth Rp 919.14 billion.<\/p>\n
But Samuel said that Jamsostek was reducing the amount of
\nmoney it put in bank time deposits due to falling interest rates.
\nAt the start of the year, some 51 percent of its funds were
\ninvested in time deposits, which has declined to around 42
\npercent and is expected to decrease further to 40 percent at the
\nend of the year.<\/p>\n
Jamsostek has instead increased the share of its investible
\nfunds in bonds, both government and corporate, to 43 percent this
\nyear from around 35 percent at the end of last year due to higher
\nyields of between 10 percent and 12 percent.<\/p>\n
Jamsostek invests its remaining 7 percent of investible funds
\nin the property and real sector.<\/p>",
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"sponsor": "Okusi Associates",
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