OJK Boss Wimboh Santoso: Indonesia's Capital Market Is Better Than Singapore And Thailand

OJK Chairman Wimboh Santoso. (Photo: Doc. Antara)

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Wimboh Santoso said Indonesia's capital market is currently better than neighboring countries such as Singapore, the Philippines and Thailand. This is evidenced by the Jakarta Composite Index (JCI) which has shown a strengthening and had rebounded above the level of 6,000.

For your information, the JCI reached its highest level at 6,165.6 on December 21, 2020 and closed at the level of 5,979.07 or contracted by 5.09 percent year to date (ytd).

"This condition is better than the exchanges of neighboring countries such as Singapore, the Philippines and Thailand," he said, at the opening of the 2021 IDX Trading Trade, Monday, January 4.

In addition, investor transactions increased by 73 percent from the previous year, with retail investor transactions increasing fourfold and being the highest in ASEAN.

The number of capital market investors rose 56 percent compared to last year to 3.88 million investors, dominated by domestic investors under the age of 30 (millennial investors) who accounted for 54.79 percent of total investors.

Wimboh said the enthusiasm of corporations to continue raising funds through public offerings, which was apparently still maintained during the COVID-19 pandemic.

"There are 53 new issuers with 51 companies listed on the stock exchange, which is the highest in ASEAN, with a raised value of Rp. 118.7 trillion," he said.

In addition, Indonesia also received global recognition as The Best Islamic Capital Market 2020 and Global Islamic Finance Awards, supported by the 2020-2024 Islamic Capital Market Roadmap. He thanked the government for preparing a series of steps to revive the capital market amid the COVID-19 pandemic.

Not only that, said Wimboh, this also happened with the SBN market which continued to strengthen with yields falling by 105 bps year to date (benchmark 1-year SBN 3.64 percent).

According to Wimboh, the recovery signal is a momentum for the revival of the Indonesian capital market industry, both in terms of investors who are provided with alternative investment instruments in the capital market with higher returns than deposits.

"In terms of issuers, there will also be provided alternative financing from the capital market with a relatively low yield compared to bank credit," he said.