Danantara: The Indonesian Capital Market Has Daily Transaction Potential Of 8 Billion US Dollars

JAKARTA - Danantara Indonesia Chief Investment Officer (CIO) Pandu Patria Sjahrir said the Indonesian capital market has the potential to reach an average daily transaction value of 8 billion US dollars (Rp132.64 trillion, exchange rate = Rp16,580).

However, he stated that in reality this potential has not been maximized, even though Indonesia has the largest population in Southeast Asia and a growing economic rate.

"Our average daily transaction value (Indonesia) should be US$8 billion per day, considering we are the largest country in ASEAN," he said in Jakarta, quoted by Antara, Thursday, October 16.

He said that currently the average daily transaction value of the Indonesia Stock Exchange (IDX) has only reached around US$1 billion (Rp16.58 trillion).

In comparison, he said India had a daily transaction value of 12-15 billion US dollars (Rp198.96-Rp248.7 trillion), while Hong Kong even recorded a transaction value of 30-50 billion US dollars per day (Rp497-829 trillion).

According to him, one of the main factors that hinder domestic capital market growth is the limited market depth and interest of public investors.

"The main problem for venture capital and long-term investment is the lack of a strong public market," said Pandu.

He emphasized the importance of strengthening financial market infrastructure so that Indonesia can become a more attractive investment destination.

The increase in the number of issuers, investor education, and governance transparency is an important step to achieve this target.

With the strengthening of broader investor regulations and participation, he is optimistic that Indonesia can double domestic capital market activities in the coming years.

He also highlighted the importance of geopolitical stability and regional cooperation in attracting investment.

"We must understand global risks, from deglobalization to nationalization. Therefore, adaptive partnerships and policies are key," said Pandu.