Minister of National Development Planning/Head of Bappenas, Suharso Monoarfa, underscores the pivotal role of the capital market in the financial sector. Speaking at the opening of the Indonesia Stock Exchange (IDX) Trading to Deepen the Financial Market for Indonesia's Economic Resilience at the Indonesia Stock Exchange building in Jakarta on Wednesday (3/13), Minister Suharso elucidated that the stock market plays a crucial role as a catalyst by providing a trading platform for financial instruments, enabling price determination through market mechanisms, facilitating more precise capital allocation, and providing financial and operational information of public companies to the general public. Additionally, Indonesia's economic transformation efforts towards the Golden Indonesia 2045 vision involve industrialization, necessitating the capital market's role in enhancing financing in the manufacturing sector. Minister Suharso asserted the importance of industries listing on the stock exchange to counteract the declining contribution of the manufacturing sector to GDP and to encourage industry players to list for broader economic benefits. However, despite the sector's significant role in employment, the number of small and medium-sized enterprises (SMEs) listed on the stock exchange remains relatively low, with only 100 SMEs listed in 2022, falling behind neighboring countries like Singapore and Thailand in capital market participation.
Iman Rachman, CEO of the Indonesia Stock Exchange, reported positive growth in the capital market conditions throughout 2023 and early 2024. He highlighted a more than one percent growth in the stock index (IHSG) compared to the previous year's end, placing IDX ninth globally with 12.5 million investors. Looking forward, the Ministry of National Development Planning/Bappenas has outlined the financial sector policy direction in the final draft of the National Long-Term Development Plan (RPJPN) 2025-2045, targeting a capitalization ratio of the capital market to Gross Domestic Product (GDP) reaching 120 percent by 2045. Short-term economic goals include targeting a growth rate of 5.3 to 5.6 percent in 2025, requiring substantial investments ranging from IDR 7,643.4 trillion to 7,711.5 trillion.
