Foreign Ownership Restrictions Should Not Be Applied

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VIVAnews - The Indonesia Stock Exchange (IDX) authorities claimed foreign ownership in the domestic market has yet to change much within the last three years. Given the percentage of between 66 and 67 percent, foreign ownership still dominates the stock floor.

IDX Managing Director Ito Warsito said the restriction to foreign capital will instead hamper the growth of the Indonesia Stock Exchange.

"If there were restriction, it would be against the regulation. In fact, foreign contribution to the IDX is still good," said Ito today, Dec 6.

According to Ito, the stock authorities for the time being do not consider foreign capital as a threat to domestic market, "because it is concerned with mid- and long-term investment."

Ito said the foreign ownership portion over the shares in the domestic market remained quite stable. "The decrease is only around 1-1.5 percent," said Ito.

Bank Indonesia and the Indonesian government are preparing a regulation to deal with the lower capital outflow. The effort is aimed at stabilizing the economy.

VIVA/Foreign Ownership Restrictions Should Not Be Applied