Sri Mulyani: Indonesia’s Capital Market Has Passed through Historic Economic Events

Minister of Finance Sri Mulyani as a guest in Podkabs Episode 6 (Photo by: PR of Cabinet Secretariat/Agung)

The development of the country’s capital market has passed through varied important events in Indonesian economy, Minister of Finance Sri Mulyani Indrawati said.

According to the Minister, the important economic events started from the colonial era, the struggle for Indonesian independence to during the global financial crises, as well as current COVID-19 pandemic and the war in Ukraine.

“Indonesia’s capital market must unquestionably face those challenges. Improving and reforming Indonesia’s capital market governance are the key to success in dealing with various shocks,” the Minister stated at the commemoration of the 45th Anniversary of Indonesia’s Capital Market, Wednesday (08/10).

In the last five years, she said, Indonesia’s capital market has grown extremely fast, driven by the reform program that has been set, business process automation, investor protection, and accelerated market deepening.

“When the Composite Stock Price Index (IHSG) experienced turbulence to its lowest point in March 2020 at the beginning of the COVID-19 pandemic, Indonesia’s capital market could respond well with the support of joint policies determined by the Government and the Self Regulatory Organization (SRO), as well as the stakeholders. We eventually can handle it properly,” Sri asserted.

The Minister also revealed that Indonesia’s capital market performance keeps improving and continues gaining trust from 9 million investors as of June 28, 2020.

This is a trust and at the same time a challenge for Indonesia’s capital market to maintain investors’ trust, especially small-scale investors, she added.

“With the volume more than eight-fold since 2017, this is also an extraordinary achievement,” the Minister said.

On that occasion, the Minister also expressed appreciation to Indonesia’s capital market for taking the initiative to use transaction fees as the funds for the implementation of Corporate Social Responsibility (CSR) in various parts of Indonesia.

“I hope the event will also serve a means to educate and increase trust from all people and potential investors in Indonesia’s capital market,” she stated, while expressing hope that all Indonesia’s capital market players will continue to struggle and not give up easily amid global economic turmoil.

“Keep striving to improve the reliability, stability, and credibility of Indonesia’s capital market. Happy 45th anniversary of Indonesia’s capital market. Glory Indonesia’s capital market,” she conclusively remarked. (PR of Ministry of Finance/UN) (RIF/HD/MUR)