RI Less Interested in Capital Market Investment

Denpasar (Antara Bali) - Indonesians are less interested in investing in capital markets compared with people in neighboring countries like Singapore and Malaysia.

Sluggish growth has been recorded in the number of people investing in capital market in Indonesia compared with other countries in this region, Director of the Indonesian Stock Exchange Friderica Widyasari Dewi said.

"One of the reasons is little knowledge about the business and the trauma of being cheated by illegal investment agencies operating especially in the regions," Friderica said at a meeting here of "Forum of Candidates for Investors on Friday.

She said only around 1 million of 240 million Indonesians showed interest in investing including 400 in capital market, 500,000 in mutual fund  and the rest in retail state bonds and other forms of investment.

"The number of people interested in investment is only around 0.5 percent. Therefore, we will seek to promote the business in the provinces," She said.

Few Indonesians know much about the benefits from investing in official investment institutions such as capital market and mutual funds.

Most people put their money in banks, while they could earn more from investing in one of the investment agencies, Frederica said. Certainly investing in capital market will face the risk of price fluctuations, she added. (*/DWA)