Sunday, 7 July 2013

OJK ENHANCE CAPACITY OF STOCKMARKET AS ALTERNATIVE FINANCING



The Financial Service Authority [OJK] had their commitment to enhance capacity of the domestic capital market whereby it might serve as alternative financing beside the banking industry. For that matter OJK encouraged the inclusive monetary system in the capital market. “This is warning to us all how to enhance access for the public to the capital market. Our strategy would focus effort on promoting capital access in all big cities and the remote areas” Muliaman Darmansyah Hadad, Chairman of the board of commissioner of OJK, disclosed this at the National Seminar on Financial Literacy in Jakarta on Tuesday [21/5].
               
In regard to that matter, to educate the public about the advantages on investing in the capital market would be enhanced, whereby to enable the capital market in indonesia to grow better.
               
The stimulate people’s curiosity of the capital market, the number of companies which would be emitents or members of the stock market would be increased. “If the capital market would be turned into capital access, there should be more emitents entering the Indonesia security exchange and build more infra structure to energize the public’ Muliaman said.
               
Muliaman further remarked that increased people’s knowledge of the stock market including all the benefits and the risks would indirectly increase capacity of the stock market as capital access. Hence the market could be expected to contribute significantly to economic stability and growth in Indonesia.

Financial Literacy still low
               
In the same opportunity furthermore Muliaman could called out all people to be literate and smart about money, because literacy level of Indonesians about finance was still low. “Financial literacy of the people is rated as still low so it becomes an important topic not just in facing crisis, but also to establish financial climate which was confident, especially in responding to crisis such as the global crisis of 2008. They [the G20 group] suffered most as they are not ready economically” he said.
               
By being financially literate, the financial industry could progress swiftly while the middle class would increase in number. By prediction in 2020 the middle class could reach 100 million people, so an effective financial service was needed. “Unless we can respond to challenges effectively, we will have to face problems’ Muliaman remarked.
               
To support the proposition, OJK applied several strategies the way it was applied in other countries, i.e. to set up an inclusive financial institution, which means financial educational program must touch all levels of the society. The same perception was also necessary so there would be a sense of management. Furthermore to enhance public comprehension of financial roles.
               
To promote financial literacy means to increase knowledge, step up skill and competence, and strengthen confidence so the general public was able to manage personal finance properly and effectively.
               
On the occasion were present representatives of the Indonesian Security Exchange [BEI], BNI, Mandiri Securities, the Association of Indonesia financing [APPI] and other financial institutions. (SS)



Business News - May 24,2013

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