Indonesian President Joko “Jokowi” Widodo said on Tuesday that the positive trend of Jakarta Composite Index (JCI) in the Indonesia Stock Exchange (IDX) was evidence of good investor trust in Indonesia and vowed to maintain market momentum with infrastructure spending and implementing policies to boost growth, the Nikkei Asian Review reports.
Visiting the Indonesia Stock Exchange (IDX) on Tuesday, Widodo witnessed the Jakarta Composite Index reaching a new record high.
“The JCI closed at its highest level in history,” Widodo told reporters following the session. “This depicts a very good level of trust from investors in Indonesia and also shows that the country’s economy in the future will be positive. Investor confidence in the Indonesian economy has been very good. I’m very optimistic that the index will top 6,000 by the end of this year.”
Widodo said that in order to maintain the current market momentum, “The government will continue spending on infrastructure projects.”
He stressed that the government will streamline its process for approving permits in order to smoothly disburse money in the budget earmarked for infrastructure projects. The government is also preparing to list several state-run enterprises on the IDX in order to further boost market sentiment.
Jokowi went on to say that the government would implement the policies it had issued to push Indonesia’s economic growth further in the future.
President Joko “Jokowi” Widodo (center) talks to Indonesia Stock Exchange (IDX) president director Ito Warsito (left) as Coordinating Economic Minister Sofyan Djalil (right) looks on during a visit to the stock exchange in Jakarta on Tuesday. Photo courtesy of the Jakarta Post.
President Director of the Indonesia Stock Exchange Ito Warsito said that Indonesia’s capital market had performed well and that the country’s economic conditions were conducive in attracting foreign investors to its stock market.
“If Indonesia wants to become a larger economy in ASEAN, the government must push its capital market industry to grow bigger,” Ito said.
According to official data, the IDX has recorded 507 publicly listed companies but only 20 state-owned companies have listed their stocks on the market.
Ito said he was optimistic that the government could push state-owned companies to release part of their stocks to the public, which would boost the Indonesian stock market’s capitalization value, he said.
“The capitalization value of the 20 state-owned companies had accounted for 25 percent of the market’s total capitalization value,” said Ito.
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