Thursday, 11 December 2014

CAPITAL MARKET CAPITALIZATION IN A DECADE REACHED IDR 5,776.20 TRILLION



Indonesian capital market can be used as an alternative financing when the banks are experiencing liquidity tightening. This is reflected in the increase in the market capitalization of the Indonesia Stock Exchange (IDX), the number of companies listed on the stock market, up to the level of the Composite Stock Price Index (IHSG), especially in the last 10 years.

Development Director of Indonesia Stock Exchange (IDX), Federica Widyasari Dewi, said that based on data from IDX in the last 10 years, the market capitalization of IDX experienced a significant increase of 652.44% from IDR 679.94 trillion at the end of 2004 to IDR 5,116.20 trillion at the end of September 2014.

The increase was in line with the growth in the number of listed companies, which rose by 331 at the end of 2004 to 502 listed companies on September 7, 2014. IHSG also rose by 413.63% from 1,000.233 points at the end of 2004 to 5,137.579 points at the end of September 2014.

“Strengthening of the capital market indicators is inseparable from the role of capital market regulators in inseparable from the role of capital market regulators who continue to strengthen the domestic investors base so that Indonesia’s capital market will be resilient in facing crisis,” said a women who was familiarly known as Kiki during the Love Capital Market Movement Press Conference, in IDX Building, In Jakarta, on Monday (November 10, 2014).

Kiki explained that an increasing number of Indonesian middle class which is currently estimated at more than 100 million people are expected to be the drivers of to the increase in the number of domestic investors in the Indonesian capital market. To increase the number of domestic investors, the proper socialization programs are needed so as to arouse public awareness to invest, primarily in the Indonesian capital markets.

Kiki also hopes that the Love Capital Market Movement or GeNTa Pasar Modal can make investments not to be considered exclusive by the Indonesian people. So far, the society considered that investing in the stock market is something exclusive.

He explained that BEI will launch “Sahamku” and “Reksadanaku” product with only IDR 100,000, meaning that with only IDR 100,000, people can be an investors in the stock market, whether trading shares directly or through mutual funds.

GeNTa Pasar Modal is a long-term agenda which is sustainable and integrated with the involvement of multiple parties, such as academicians, members of the stock exchange, investment managers, and listed companies. It is expected that the community can enjoy the benefits generated by the Indonesian capital market literacy with the aim to increase the number of investors in the capital market through a variety of socialization and educational activities.

GeNTa Pasar Modal is arranged in cooperation with various parties, such as IDX, Indonesian Clearing and Guarantee Corporation (KPEI), Indonesian Central Securities Depository (KSEI), association of Indonesian Securities Companies (APEI), Mutual Fund Association of Indonesia (APRDI), association of Indonesian Capital Market Professionals (APPMI), and Indonesian Listed Companies Association (AEI).

The event is targeting participants from listed companies’ employees who have share ownership programs (MSOP and ESOP), entrepreneurs, professionals, civil servants, housewives, and academicians. (E)

Business News - November 12, 2014

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