No rise in foreign stake<\/p>\n
JAKARTA (JP): The government is unlikely to raise the 49
\npercent limit for foreign investors' ownership of shares listed
\non domestic stock exchanges.<\/p>\n
Yusuf Anwar, the secretary general of the Ministry of Finance,
\nsaid here yesterday that raising the ownership ceiling as a favor
\nto foreign investors could destabilize the country's monetary
\nsystem.<\/p>\n
"We are very much concerned about the inflows of short-term
\ncapital through stock markets," Yusuf said about the government's
\nreasons in maintaining the policy.<\/p>\n
Yusuf, speaking at the fourth congress of the Indonesia
\nFinancial Executive Association (IFEA) at the Shangri-La Hotel
\nhere, said that the capital inflows would be much more volatile
\nif the foreign investors were allowed to buy more than 49 percent
\nof listed stocks.<\/p>\n
The threat of the short-term capital has also become the
\nconcern of other countries like Japan, the United States, Hong
\nKong and Taiwan, he argued.<\/p>\n
"We may amend the foreign limit in the future," he said. "But
\ngive us a longer period of time to study all its impacts on our
\nfledging capital market."<\/p>\n
The widening of the foreign limit has been long awaited by
\nstock market players. The existing ruling on foreign investment
\nin listed shares is no longer consistent with regulations on
\ndirect investments, which allow foreign investors to have an
\nequity holding of up to 100 percent in unlisted companies.<\/p>\n
Yusuf said speculative trading on the capital market, which
\ninvolves short-term foreign investment, has thus far been
\nmanageable.<\/p>\n
"I hope the planned bill on the stock market will be able to
\ncover preventive efforts against speculative moves," he told
\nreporters after presenting his speech.(fhp\/hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/no-rise-in-foreign-stake-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}