From: Antara NewsJakarta (ANTARA News) - Domestic investors are asked to play a role as a balancing factor against the flow of foreign funds into the country so that the domestic financial market stability could be well maintained, a cabinet minister said.
"The domestic investors such as insurance companies, pension funds, mutual funds, banks, security firms and individual or retail investors are expected to play a role as balancing factor for foreign fund flows into Indonesia," Finance Minister Agus Martowardojo said in a meeting with investors here on Thursday.
According to Agus, the improvement of he Indonesian economic fundamentals had been attracting considerable interest from foreign investors to enter Indonesia.
Foreign capital flows that went through state debentures (SUN) in June 2010 alone had amounted to Rp17.96 trillion.
Until the end of June 2010, foreign ownership in SUN traded in the Rupiah have reached Rp162.05 trillion or 26.09 percent of the total amount of state securities that can be traded.
"We have to remain alert on the risk of withdrawal of foreign capital flows and continue to assure so that the foreign funds would stay longer in Indonesia," said the finance minister.
In this regard, the finance minister said, domestic investors are expected to contribute to balancing the swift flow of foreign funds into Indonesia.
The minister said, developing domestic state securities market has been the priority of government and the government will continue to encourage the development of the financial industry in the country could increase investment capacity in domestic financial instruments.
"Besides that, the government would continue to improve the supporting infrastructure of state security trade activities," the minister added.(*)