Tito Sulistio, President Director of IDX, said the pension fund is 13% of the total portfolio of IDR 222.88 trillion and needs 10%-12% of yield for a year. If so, they should go into stocks with a share of 33% from portfolio or around IDR 54 trillion.
The Insurance industry with an investment fund of IDR 640 trillion is predicted to place IDR 25 trillion to stocks. Demand for stocks from mutual fund industry is expected to reach IDR 15 trillion. The remaining IDR 6 trillion is for public investors. “So next year, the stocks need to reach IDR 90-100 trillion.” according to Tito.
To that end, IDX requires about 40 new issuers in 2017; 14 companies coming from State-owned enterprises and their subsidiaries.
IDX has revised the target from 35 down to 25 new companies and until September 2016, only 14 companies have been recorded as new issuers. (*)
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