Remarks of President of the Republic of Indonesia at the Opening of Trading during the 44th Anniversary of the Indonesia Stock Exchange, 10 August 2021, Bogor Presidential Palace, West Java Province

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 10 Agustus 2021
Category: Remarks
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Assalamu’alaikum warahmatullahi wabarakatuh,

May prosperity be upon us all,

Om Swastiastu,

Namo Buddhaya,

Greetings of Virtue.

Ladies and Gentlemen, Esteemed Guests,

I am aware of the heavy pressure from COVID-19 pandemic on capital market actors. This is a tough situation. Nevertheless, we still manage to maintain our economic growth.

We are grateful that Indonesia’s economy in the second quarter of 2021, namely in April, May and June 2021, grew by 7.07 percent. Previously, we had a deep contraction at minus 5.32 percent in the second quarter of 2020. After reaching the lowest point, our country’s economy is able to rebound step by step, growing to minus 3.49 percent in the third quarter of 2020, minus 2.19 percent in the fourth quarter of 2020, and minus 0.71 percent in the first quarter of 2021. And finally we can grow even faster until we get out of recession.

Various economic indicators have also shown an improvement. Household consumption, consumption of non-profit institutions (LNPRT), the Government consumption of gross fixed capital formation (PMTB), investment, and exports-imports sectors have reported a positive growth. Our exports were able to grow to 31.78 percent.

Ladies and Gentlemen,

I have received good news from the stock exchange. The Indonesia Stock Exchange has recorded a significant increase in the number of investors as of July 2021 with an increase of 50.04 percent. It is more than fourfold higher compared to that of 2017. I am grateful that the increase in investors in the stock exchange is dominated by domestic investors and millennials. The increase in the number of investors will contribute to resilience to overcome market pressures.

During the pandemic, the number of companies conducting an initial public offering (IPO) on stock exchange has not decreased. The number of IPOs remains the highest in the ASEAN. As of the end of July 2021, there were 27 new IPOs recorded. The achievement has been made for four consecutive years.

However, we have to stay vigilant. In the third quarter of 2021, the economic conditions are tougher. We are aware that from the beginning of July, the Delta variant has forced us to restrict people’s mobility which certainly has an impact on our national economy. This is something that must be closely monitored, including by the stock exchange.

Ladies and Gentlemen,

The Indonesia Stock Exchange has the opportunity to grow better. At the beginning of the pandemic, during the implementation of the first activity restrictions (PSBB) and the second PSBB, the daily transaction value on the stock exchange increased to Rp 7.5 trillion and even to Rp 8 trillion. After the second PSBB ended, the daily transaction value even reached Rp 13.1 trillion.

We must maintain the momentum. Increasing confidence in the Indonesia Stock Exchange must be our priority. Digitization must be accelerated. Product, productivity, and service quality must be continuously improved. Law enforcement must be served firmly and transparently, and we must improve the national economic ecosystem together.

Finally, to the Board of Commissioners, Board of Directors, and the big family of the Indonesia Stock Exchange, I would like to congratulate you on the 44th anniversary of the re-activation of the Indonesia Stock Exchange. Let us join hands to boost Indonesia’s competitiveness amid the global competition to achieve the developed Indonesia we aspire to.

I thank you.

Wassalamu’alaikum warahmatullahi wabarakatuh,

Om santi santi santi om,

Namo Buddhaya. (RI/MUR)

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