Net buy by foreign investor is still going on the Indonesia stock market or IDX. Estimated they will continue to enter and hunt the cheap of blue chip share. This because foreign investors buy it with dollar, earns better rupiah a lot so they earn its share in very cheap price.
Isn't it true this mean big profit, by exploiting distortion of rupiah and fall of share price in Indonesia stock market? This pattern have been read, moment of capitol outflow from emerging market in very big amount. This follow the US interest increase issue, as a result rupiah fall deeply, followed by fall of the stock by massif sell of foreign investor.
In this condition, foreign investors stay in the most beneficial position. Moment they step into the stock, their dollar have very high its value to rupiah. And surely with the share position descend almost 20 percentage of early year, hence share price have very cheap price.
Foreign investors gain the double advantage, from exchange rate of rupiah and from its cheap of share price. Estimated counted by this, foreign investor can earn more than 30-45 percent in exchange for its dollar with the blue chip share in Indonesia stock market. And surely IDX also move up, so earning can be estimated to be better, foreign investor can increase 10 percent in a few day or week.
It is true, stock in emerging market like in Indonesia is very easy to be predicted and exploited to gain more advantage which is as much as possible. Consumptive Economic pattern embraced by Indonesia, it is true and likely give benefit to foreign investor. Even economically for Indonesia, this consumptive economic pattern is very harming toward future growth.
It is estimated that stock market will be in volatile condition, this is because foreign investor position is already in profit. They hold more than 50 percent profit, so they can easily go out again buy dollar, because dollar position returning weak so become very cheap to be bought. This position offers the possibility of profit taking in stock market.
And surely with the Indonesia government policy which is still not focus. Economic Policy 1, 2, 3 and so on still not yet moved the fundamental economic, rupiah has possibility to be fluctuating and this is big opportunity for foreign investor to gain advantage.