Indonesian capital market retains its position as the third most optimistic market in Asia Pacific region in the first quarter this year, but investors still take cautious stance to invest in the country, a survey revealed here.

The result of a survey carried out by the Netherlands-based financial service giant ING places Indonesia in the third position after India and China, or equals to it was in the corresponding period last year.

Indonesia ranked No. 3 after China and India in the first quarter last year.

"The ongoing optimism is likely because investors felt that Indonesia's economy was cushioned to an extent by high commodity prices and fuel prices correction," the Jakarta Post Monday quoted ING Securities Indonesia President Robert Scholten as saying.

However, despite the encouraging outlook, he said that ING survey also showed investors' sentiment index for Indonesia fell to 96 points in the first quarter this year from 109 points in the same period last year.

Investors were taking a conservative investment approach since they have learned their lesson from the first economy crisis in Indonesia in late 90s.

The investors' confidence in Indonesia is incited by the government's quick response in dealing with financial crisis impacts.

The relatively peaceful legislative elections and the result that likely indicated for a second term of President Susilo Bambang Yudhoyono's presidency, have received positive responses from the market.

Indonesian Finance Ministry estimates the economy growth may reach between 4.3 percent to 4.8 percent in the first quarter this year. The official figure will be announced by Central Statistic Agency in May.

The survey measures and tracks investors sentiment and behavior every quarter from 13 countries in Asia Pacific markets, including China, India, Australia and New Zealand.