RI'S ECONOMIC INDICATORS SHOWING POSITIVE TREND: MINISTER

Jakarta, June 17 (ANTARA) - Finance Minister Sri Mulyani Indrawati said the positive trend in Indonesia's economic indicators, including its composite share price index, was due to investors' confidence in the country's ability to weather the global economic crisis.

"Indonesia is experiencing a positive trend as indicated by the improvement in the composite share price index, foreign exchange rates and bond markets at a time when many countries are suffering from capital outflows," the minister said at a meeting on state budget matters with the Regional Representatives Council (DPD) here on Tuesday.

She said developments in the composite share price index, exchange rates and bond market were showing a positive trend so that Indonesia was placed in a leading position because its economy was considered stable and prospective.

"That's why investors consider Indonesia able to face the global economic crisis in the first and second quarters of 2009," the minister explained.

She said since March rebounds had been taking place as shown by various economic indicators such as the composite share price index, exchange rates and foreign exchange reserves.

The foreign exchange reserves had increased to US$57.2 billion close to the highest level of about US$60 billion, the minister said.

Mulyani said the rupiah's exchange rate against the US dollar had gained 9.85 percent since early in 2009 while the composite share price index had strengthened by 51.7 percent.

The Composite Stock Price Index (IHSG) at the Indonesian Stock Exchange (BEI) here on Tuesday opened 2.22 percent lower, as investors released blue chip shares following losses in regional and world bourses.

The BEI index plunged 2.22 percent or 46.144 points to 2,023.237 points, and the LQ-45 index fell 2.53 percent or 10.213 points to 393.171.

In March, the amount of capital inflow into the capital market reached Rp1.82 trillion, in April Rp2.60 trillion, in May rp1.97 trillion and in June Rp1.86 trillion. This increased if compared with that in February which stood at Rp562 billion only.

Since April, the capital flow through bond purchase had also been showing an upward trend, which had reached Rp3.88 trillion.