Sri Mulyani: The Indonesian Capital Market Must Be Able To Face Global Challenges

Minister of Finance Sri Mulyani (Photo; Doc. Antara)

Minister of Finance Sri Mulyani Indrawati said that for almost five decades since being reactivated in 1977, the Indonesian capital market has become an important part of national economic development.

According to him, the capital market grows into a strategic pillar in financing development, contributing to the expansion of economic activity, both for large corporations and people who want to invest productively and safely.

"Indonesia's capital market is an important part of national economic development. It grows into a strategic pillar in financing development and expanding the economy, both large corporations and the wider community who want to invest productively and safely. This achievement is certainly not the end of the journey," he said in commemoration of the 48th anniversary of the re-activation of the capital market in the country, Monday, August 11.

In the future, he said that the world will face increasingly complex challenges such as geopolitical tensions, climate change, and technological disruptions will change the landscape of the financial sector, both at the national and global levels.

"Indonesia's capital market must be able to anticipate this. This dynamic is a challenge and at the same time an opportunity," he said.

Sri Mulyani hopes that the capital market will continue to become a stable, inclusive, and sustainable financing motor, in line with the direction of national development starting from downstreaming of industry, food and energy security, the health sector, to strengthening cooperatives and the village economy.

He said that the Indonesian capital market must be able to be the main driver as well as an alternative financing that supports various government programs and community economic activities.

According to him, the transformation of the national economy also needs to be supported by the expansion of the investor base, especially from among the younger generation so that innovation is needed in creating investment instruments that are not only attractive, but also reliable.

"Economic transformation is supported by the expansion of the investor base, including and especially the younger generation, to be important. Create innovative instruments, but also remain reliable. Green Bonds, Sukuk, and various other financing innovations are highly anticipated by investors, especially people who want to forge funds safely and sustainably," he said.

Sri Mulyani emphasized the importance of building a healthy capital market by maintaining investor confidence, especially small investors because public trust is the main foundation in creating a strong and sustainable capital market.

"The capital market must be a pillar to encourage the economic growth of a just Indonesia, a trusted strategic partner, and continue to be an institution that builds Indonesia's reputation. Dirgahayu, the Indonesian capital market continues to grow, be resilient, and trusted for advanced Indonesia," he concluded.