Strengthening The Capital Market And Expanding Access For MSMEs In 2020

Trade Minister Agus Suparmanto. (Photo: Ministry of Trade)

JAKARTA - Minister of Trade Agus Suparmanto appreciated the positive performance of the Indonesian capital market sector in 2019 at the closing of the Indonesia Stock Exchange (IDX) in 2019, Monday 30 December. According to the Minister of Trade Agus, there are many challenges and dynamics faced by Indonesian capital market players in 2019.

At the closing of the IDX, it was reported that in 2019 there were a total of 175 public offerings with an emission value of IDR166.25 trillion, of which 56 were new issuers. In addition, there was an increase in the use of fund raising through investment management products such as Real Estate Investment Funds (DIRE), Infrastructure Investment Funds (DINFRA), mutual funds, and others by 8.37 percent with a total managed amount of IDR 811.19 trillion.

"In the future, I ask that we continue to strengthen the capital market so that it will not only function as an investment vehicle for domestic and foreign investors, but also in providing an affordable long-term funding source for economic players. This can encourage quality and sustainable economic growth, ”said the Trade Minister.

In addition, it is hoped that capital market access to micro, small and medium enterprises (MSMEs) can be expanded so as to bring benefits to the development of Indonesian MSMEs. In terms of financial market deepening, efforts are made to continually increase the variety of capital market products so that the number and quality of domestic investors can increase. In the end, this can contribute to maintaining overall financial market stability.

Another important thing, continued the Minister of Trade Agus, is the development of capital market instruments that can contribute to the development of the quality of Indonesian human resources so that they are more competitive in facing changes in the world.

"It is hoped that various literacy and inclusion efforts of capital market products will continue to be carried out in a complete and balanced manner to all people. Capital market authorities and players must also continue to innovate and be creative in providing various investment products according to the needs of investors, "said the Trade Minister.

Furthermore, Trade Minister Agus revealed that the government always supports the Financial Services Authority (OJK), Self-Regulatory Organizations (SRO), and all stakeholders in the financial services industry in facing new challenges ahead so that market conditions remain conducive to domestic and foreign investors. It is important to maintain a conducive market condition in order to encourage economic growth and investment.

"No less important, also prioritize consumer protection. Capital market players must prioritize market conduct and be supported by good governance, so that capital market consumers can invest safely and comfortably, "said the Trade Minister.

Appreciation of Strategic Policies in the Capital Market Sector

On this occasion, the Trade Minister, Agus, on behalf of the government, also expressed his appreciation for a number of strategic policies in the capital market, which include alternative financing for the government's strategic sectors, instruments for accelerating national economic growth, and access to finance for MSMEs and local communities.

“Infrastructure development can use a funding mechanism through public offerings for the issuance of shares and bonds. Throughout 2019, the public offering used for infrastructure development is worth IDR 15.4 trillion, ”said the Minister of Trade Agus.

Meanwhile, the capital market plays a role in accelerating national economic growth in the form of taxes for the country originating from trading on the stock exchange and liquidity assistance for companies through the issuance of capital market instruments. Meanwhile, in providing financial access for start-up companies, MSMEs, and communities in the regions, OJK has established a technology-based mechanism in the capital market or better known as equity crowdfunding.

In addition, Trade Minister Agus also appreciated strategic policies in the capital market sector that prepared the financial services industry to face the 4.0 industrial revolution and reform industrial business processes.

"Industry players and regulators are expected to continue to adapt to keep up with technological developments and to digitize services. That way, it will be easier for the Indonesian people to access financial products / services, which will lead to an increase in the literacy and inclusion index of the community, "concluded the Trade Minister.