Capital Market

        Indonesia had experienced economic devastation that had been built through the joints of the new order policy began crawling back construct the foundation of the economy. If the country is still classified as a developing country, the market in the country is also in a developing stage, although market shares are fully functional and well organized. Developed capital markets can be identified through a country, whether the country is a developed country or a developing country classified. But the most striking characteristic is seen the value of the market capitalization of companies listed, the cumulative trading volume, the tightness of capital markets regulation, sophistication and culture to domestic investors.

         Consequences of growing capital market is a small market capitalization value. A measure of market capitalization ratio is usually seen from the comparison with the value of a country’s gross domestic product. In addition to the other consequences is the presence of thin trading volume (thin trading) caused by trade (non – syncronous trading) on the market. Indonesia which is still listed on the IFC is still a developing country with the worst investment climate in the East Asian region. Even with a record like that, in fact we are still considered by foreign investors. The fact that there are national companies with actually being in the strategic sectors of the country, offered by some foreign institutions through the acquisition of shares. The presence of capital inflows as investments in general is foreign investment should be a booster of the macro economy. The main reason for foreign investors to move their funds to developing countries is that developing countries have the potential untapped business entirely, as in the classic motifs of investment to other countries.