The Analysis of Indonesia Capital market

A. Indonesian Capital Market

The Indonesia Capital Market performance from year 2006-2011 is in good run because the historical data of the capital market show the increase of the price and volume of transaction as the year goes by. Even though there are some decreases in price and volume of transaction for the year 2008 as the impact of the Global Crisis, later on in the year 2009 the market moved in positive action as the financial crisis is being handled even not fully recovered. The year 2009 closed with a stellar performance by the Indonesia Stock Exchange. The stock market index was up 85.85 percent, ranked second after the Shenzhen Stock Index, which increased by 115.27 percent, and ahead of other Asian stock indices such as Mumbai, Shanghai, Hong Kong and Singapore.

There on April 20, 2011 the Jakarta Composite Index hits new record and closed at 3,794.76. Trading volume was about Rp.5.9 trillion ($0.68 billion) and the overall market capitalization up to Rp.3, 384 trillion ($389 billion). For 2011 the performance of the market is increasing as the numbers of events are happening such as the IPO of the Garuda Indonesia. And in the february 2011, the BI rate was increase to 6.75% which is responded positively by the investors at first but then slightly reduced as the investors are hoping the Capital Bank to increase the interest rate again in order to reduce the inflation. So, the Indonesia Capital Market is in a good condition and can be better in the future as the financial condition is growing from year to year.