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Indonesian investors are on par with their top regional peers
in terms of perception of a better economy ahead, where they can expect
higher returns for their investments, a regional survey has revealed.
There is also a growing interest among local investors, who usually
prefer to invest in the country's property sector, to put their money
in the stock markets, the survey from ING Asia Pacific revealed
recently.
A total of 47 percent of Indonesian investors believe the local economy
will improve in the next three months, with 29 percent having similarly
said so of the previous period.
This follows a generally optimist outlook in the region, with more than
70 percent of investors in China and India showing confidence in their
respective country's economy and investment environment. More than half
of the respondents in Malaysia, the Philippines, Hong Kong and
Singapore also share an upbeat view on the future economy.
Only Japan showed a pessimist attitude, with only 26 percent of
respondents expecting a more favorable economy, in what the survey says
is a possible reflection of the country's recent political changes.
The first of the quarterly-planned surveys from the Amsterdam-based
insurance group and New York-based TNS research firm included the
responses of 1,038 individual investors in 13 Asia-Pacific markets.
Investors in Indonesia led the region with their confidence in being
able to reap more handsome profits from their investments, with 55
percent of respondents seeing a higher return-on-investments (ROI)
level, from 40 percent in the previous three-month period.
Investors in the Philippines, Malaysia and Thailand followed suit, with
those in China and India only slightly less optimistic. There were less
respondents in the remaining countries that saw a higher ROI level
ahead.
"Indonesia's improving macroeconomic condition has given local
investors more confidence," ING Indonesia spokesperson Robert Scholten
said of the survey, which was released earlier this week.
"Investment in property, which has been a sunset sector since the spike
in fuel prices, is significantly on the rise."
Indonesia's property sector is indeed still attracting the majority of
investments in the country, with 58 percent of respondents still
considering the practice of purchasing land, houses and apartments as a
major part of their portfolio.
This compares to local stocks as the main investment choice of
respondents in Japan, Hongkong, Singapore, Korea, China, Taiwan and
Thailand.
More Indonesian investors are eyeing prospects offered by the local
stock market, with 17 percent of respondents planning to invest in
shares in upcoming initial public offerings (IPOs) over the next three
months. This is up from the 4 percent who did so in the previous period.
Caution should, however, still be exercised along with the growing
confidence in investing, as Scholten noted the survey found investors
in more mature economies were more conservative in their outlook, while
those with a short investing history tended to be extremely optimistic.
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