The Government Reveals That Indonesia's Financial Market Deepening Is Still Left Behind Compared To ASEAN

JAKARTA - The government reports that Indonesia's financial market deepening is still relatively low when compared to other countries, as reflected in the limited source of financing available.

Deputy for Business Management and Development of State-Owned Enterprises, Coordinating Ministry for Economic Affairs Ferry Irawan stated, Indonesia's share market capitalization share in 2024 reached around 55.67 percent of GDP, placing Indonesia in fourth place among ASEAN countries.

He added that the deepening of this financial market still needs to be improved and there is still a large space to encourage capital markets, bond markets, and the banking sector.

"We still have enough space to increase the deepening of this financial market, both in terms of capital markets, bond markets, and banks because once again, when compared to ASEAN, we still have a lot to pursue," he said at the Sarasehan 100 Economist Indonesia event, Tuesday, October 28.

On the bond market side, Indonesia is also ranked fourth with a share of 34.81 percent of GDP as of March 2025.

Banking credit disbursement to the private sector is still relatively low, with a ratio of 36.4 percent to GDP in 2024.

Menurutnya, hal tersebut akan menjadi fokus perhatian Pemerintah ke depan untuk meningkatkan kedalaman pasar keuangan Indonesia.

"Sebagai perbandingan misalnya dengan Malaysia, untuk bond market-nya juga kita masih perlu kita dorong terus ini yang kemudian juga jadi hal yang ke depan akan jadi perhatian kita untuk meningkatkan pendalaman pasar keuangan kita," jelasnya.

According to him, this will be the focus of the Government's attention in the future to increase the depth of Indonesia's financial markets.

"As a comparison, for example with Malaysia, for the bond market, we also need to continue to encourage this, which then will also be our concern in the future to increase the deepening of our financial market," he explained.