Sri Mulyani: Positive Economic Performance in 2022 Bodes Well for Stock Market in 2023

Minister of Finance Sri Mulyani dan Chairperson of Board of Commissioners of the OJK Mahendra Siregar accompanied President Joko Widodo at the iopening of 2023 Indonesia Stock Exchange, Monday (01/02).(Photo by: BPMI)

Minister of Finance Sri Mulyani Indrawati has expressed optimism that the performance of Indonesia’s capital market amidst global economic turbulence in 2022 bodes well for 2023.

“We showed great resilience in 2022 amidst challenges that really weren’t easy. This is a good start to usher in 2023,” Sri Mulyani said during the opening of the 2023 Indonesia Stock Exchange (IDX) at the IDX Building, Jakarta, Monday (01/02).

In 2023, she continued, the Ministry will continue improving integrity, accountability and credibility of the capital market, driven by the implementation of the Financial Sector Development and Strengthening Law (P2SK).

Acording to her, this is a joint responsibility between Ministry of Finance, the Financial Services Authority (OJK), central bank Bank Indonesia (BI), and the Deposit Insurance Corporation (LPS) as the Secretariat of the Financial System Stability Committee (KSSK) in consistently building a strong, stable, credible, accountable and trustworthy financial sector foundation.

“This is a task that is certainly not easy, but it must be done anyway. It is also a task that aims to reach the potential of Indonesia’s capital market that is very large,” she said, while expressing hope that all stakeholders including the KSSK can continue maintaining stability of the national economy in the financial sector, including in expanding access to financial services, increasing sources of long-term financing for infrastructure development, increasing the competitiveness and efficiency of stock exchanges, as well as improving instruments and regulations in risk mitigation and consumer protection in the financial sector.

“The application of the principles of equal activity, equal risk and regulation is of great importance,” she added.

Echoing a similar sentiment, Chairperson of the Board of Commissioners of the OJK Mahendra Siregar acknowledged that in the midst of the global uncertainty and declining stock exchange performance in a number of countries, Indonesia’s capital market last year managed to record a positive growth.

“In the midst of turmoil and uncertainty in Europe and many countries globally, Indonesia’s economy and its reflection on the performance of the Indonesian capital market in 2022 has persisted and tends to show a very positive performance even the best compared to economies in countries in ASEAN and Asia as a whole,” said Mahendra.

This positive performance, he added, was shown from the performance of the Composite Stock Price Index (IHSG) that increased by four percent compared to that in the previous year, 59 companies that listed their initial shares (IPO) in 2022, and the number of capital market investors that increased to 10.3 million or 10 fold in the last five years since 2017.

“What’s more interesting is that it is dominated by domestic investors, which makes up 55 percent of all investors. And if you calculate the millennial generation and generation Z or so-called zillennials, it makes up 58.7 percent. Those are extraordinary achievements,” Mahendra said, while reinforcing his commitment to increasing the integrity, accountability and credibility of Indonesia’s capital market.

“Our next priority is to boost the economy with strong resilience. There is no ‘wait and see’ stance for investment in Indonesia. It’s all about investment. We have to be ready for it and we will push the momentum,” he remarked. (FID/UN) (EST/EP)