http://www.antara.co.id/en/seenws/?id=18914


Bapepam opposes planned restrictions on foreign investments


Bandung, West Java (ANTARA News) - The Capital Market Supervisory Board 
(Bapepam) opposes the proposed restriction on the inflow of foreign investments 
to avoid hedge funds that may cause bigger problems, its chairman A. Fuad said.

"We have long applied open capital account. "If the policy is applied we will 
see a setback," he said in a workshop here on Saturday.

"We`d better make regulations capable of withholding foreign funds for a long 
time," he said.

He also said the percentage of foreign capital market transactions in Indonesia 
showed an upward trend.

However, he added, that the capital market`s contribution to the economic 
growth was still small, reaching 29 to 30 percent of the gross domestic product 
(GDP), while the remaining 70 percent was dominated by the banking sector.

"In developed states the capital market`s contribution to GDP is 80 percent," 
he said. (*)


COPYRIGHT © 2006 ANTARA

August 26, 2006


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