Hong Kong Investors Interested in Islamic Instruments

Thursday, 25/03/2010 00:00 WIB

Hong Kong investors interested in Indonesian Islamic instruments

Irvin Avriano A.

for Bisnis Indonesia

JAKARTA: Several Hong Kong investors are interested in investing in the domestic Islamic capital market instruments this year as they have expressed during their visit to the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) office.

"They are interested in domestic capital market investment instruments. They have been asking questions about Islamic instruments and tell us they will invite investors here at the next meeting," informed Accounting Standard and Disclosure Bureau Chief at Bapepam-LK Etty Retno Wulandari to Bisnis yesterday.

She told it after a meeting between several Bapepam officials, including herself, and Financial Secretary Special Administration Region (SAR) of Hong Kong John Tsang.

However, she had not been able to tell for sure when the next meeting would be held. The Accounting and Transparency Standard Bureau at Bapepam-LK supervises Islamic securities regulations and implementation in the capital market.

On the same occasion, Chairperson of Bapepam-LK Ahmad Fuad Rahmany disclosed Hong Kong and China currently have a huge investor base of 16,000 investors, creating big opportunities for Indonesia to market its capital market investment product.

"They are interested in Islamic instruments in Indonesia due to our potential."

Separately, Real Sector Companies Financial Assessment Bureau Chief of Bapepam-LK Anis Baridwan regretted the lack of Islamic investment instrument issuance by issuers or other capital market players.

He further called for product variation so that Islamic instruments would have better sales value and better chance to be eyed by investors.

"As long as there are no regulations violated, product variation will be good to attract interests."

He explained compared to other countries, Indonesia is one of the countries most ready in terms of legislations and regulations to accept product variant, posing smaller risk to argument about Islamic value.

Data by Bapepam-LK showed Islamic instrument currently only represented 3% of IDR3,850 trillion's worth of conventional instruments consisting of insurance, banking product, T-notes, corporate bond, and mutual fund products.

Anis Baridwan added Bapepam would encourage market players to maximize Islamic securities.

President Director of PT Financorpindo Nusa Edwin Sinaga forecasted Islamic securities would have better growth ahead. "Evaluations and research show the potential amount of fund placed in Islamic securities is huge, but the number of products is instead still small." (Bisnis/iaa)