Moving Financial Inclusion Through The Capital Market

Indonesia Stock Exchange Building (IDX). (Angga Nugraha/VOI)

JAKARTA - PT Bursa Efek Indonesia (IDX) as one of the guards in boosting the country's financial literacy and inclusion, continues to move forward to knit public understanding related to the capital market.

Through the Investment Gallery, one of the self-regulatory officials in Indonesia is trying to boost public interest, especially those at productive age to participate in building a capital market ecosystem through investment.

This was acknowledged by IDX's Director of Business Development, Jeffrey Hendrik. He said that during the last 10 years the IDX had developed an Investment Gallery in 700 universities throughout Indonesia.

Every year, the IDX targets to add 100 Investment Gallerys to strengthen the understanding of potential investors related to the Indonesian capital market.

"We have also just launched the Aku Stock Investor campaign," he told VOI, Wednesday, November 8.

This is a form of IDX's commitment to be able to build a positive capital market ecosystem. This action is important because the capital market contribution to Gross Domestic Product (GDP) is also quite high.

Chairman of the Board of Commissioners of the Financial Services Authority (OJK), Mahendra Siregar noted that over the past year, stock market capitalization had reached IDR 9,500 trillion or around 600 billion US dollars.

This amount is equivalent to 50 percent of GDP. In the future, this portion has the potential to increase along with the growth of market capitalization.

The President Director of the IDX, Iman Rachman explained, as of October 18, market capitalization had reached the level of IDR 10,000 trillion with total daily transactions reaching IDR 10.5 trillion.

The socialization program that continues to be promoted, both through the Investment Gallery, Capital Market School and routine educational activities carried out by 29 IDX representative offices, have a positive impact.

The cumulative number of capital market investors has reached 11.9 million, which is dominated by the millennial generation and also generation Z. This figure has increased by 1.9 million so far this year and has grown 5 times in the last 5 years.

Statista data said the IDX itself in May was included in the top 11 stock exchanges with the largest market cap in Asia Pacific with a market capitalization of US$604.64 billion.

Leaving the Malaysian Stock Exchange far with a market capitalization of US$370.84 billion and the Philippine Stock Exchange which reached US$243.57 billion.