Anies-Muhaimin Economic Team Reveals Current Capital Market Problems, Anything?

Indonesian capital market (Photo: dock. Antara)

The presidential candidate pair (candidate) Anies Baswedan and vice presidential candidate (cawapres) Muhaimin Iskandar, revealed that there have been a number of problems regarding the Indonesian capital market to date.

Based on data presented by the Anies Baswedan and Muhaimin Iskandar Economic Teams, Wijayanto Samirin, Indonesia's capital market capitalization of GDP in 2022 reached 48.5 percent. According to him, this figure is far below several neighboring countries, such as Singapore 129 percent, Thailand 119 percent, Malaysia 91.6 percent, to Vietnam 51.2 percent.

"Market Cap to GDP ratio is still very low," he said in the 2024-2029 Investment Policy and Capital Market Dialogue, in Jakarta, Monday, January 8.

In addition, said Wijayanto, there are other unique things in the Indonesian capital market that are considered to put the brakes on growth are certain sectors and corporations that still control it.

The financial sector, for example, is at the top of market capitalization, as much as 71 percent of the sector is controlled by four (4) perpetrators.

"There are 105 perpetrators, but there are four (4) major perpetrators who control 71 percent of the market cap," he said.

Then, the energy sector is controlled by two actors. "Energy is around 83 perpetrators, but two big actors control 67 percent of the market cap," he said.

According to him, the industrial and technology sectors which are expected to be the driving force for capitalization are relatively small. His party wants the capital market to be a driving force for development, so the sector needs to be encouraged.

"To encourage the capital market, in terms of supply, his party will encourage SOEs to conduct an initial public offering (IPO).

"The JV companies they come to get tax facilities and so on, before they get that convenience, we have to make sure they have a commitment for an IPO," he said.

"Then, we make it easier for future sectors to list," he said.