Indonesia's biggest pension fund, Jamsostek, has been heavily buying local shares during the market's recent selloff as it views the nation's fundamentals as strong and expects its stock market to become a 'safe haven' for foreign investors, a senior fund executive said.
Elvyn Masassya, Jamsostek's chief investment officer, told Reuters in an interview on Wednesday he sees the current market conditions as an opportunity to buy some cheap stocks.
Indonesia's stock market, Southeast Asia's best performer this year, suffered its biggest daily loss since 2008 on Friday as investors dumped blue chip stocks amid worries on the global economy. Masassya, who oversees investments of the fund's $13 billion worth of assets, said the fund is increasing its stocks exposure to more than 20 percent this year and reducing its holdings of bonds to tap the strong growth in corporate earnings.