REPUBLIKA.CO.ID,JAKARTA -- The success of presidential election on July 9, 2014 gives a positive effect on foreign investors. Foreign capital flow continued to rise with the increase of investor confidence.

"Investor confidence on Indonesian economic growth encourages the achievement on composite stock price index (IHSG) at 5,149 in near future," Chief of Analysts of Asjaya Indosurya Securities, William Surya Wijaya said on Wednesday as reported by Friska Yolandha.

According to him, there is no significant pressures in IHSG. The index has exceeded 5,050 of support level. At the first trading session on Wednesday for example, IHSG closed up 1.035 percent or 52.5 points at 5,123.32. Until the afternoon session, the transaction has reached 3.85 trillion IDR.

Financial Services Authority (OJK) previously saw that the swift entry of foreign funds was a form of investor confidence in Indonesian capital market. OJK commissioner for capital market supervision, Nurhaida said that the flow of foreign funds had exceeded last year.

In July 11, 2014, foreign funds has reached 53.9 trillion IDR compared to 20 trillion IDR in 2013. The good response must be kept positively because foreign investors are part of Indonesian capital market. She hopes that foreign transactions in Indonesia continue to rise supported by economic and political conditions, which are stable and conducive.

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