Stock market instrumental in Indonesia`s economic growth: Minister Sri Mulyani

03 January, 2017 | Source: Antara News

The stock market plays a key role in Indonesias economic growth, according to Finance Minister Sri Mulyani Indrawati.

"Everyone understands the importance of the capital market and its role in the Indonesian economy. We need investment to develop the economy equally," Indrawati stated here on Tuesday.

The minister pointed out that the capital market could cater to the investment needs of the community.

On the other hand, the stock market can provide an opportunity to entrepreneurs in need of funds for expansion.

Hence, he is optimistic that the number of listing companies would increase, as it could represent the aspirations of the Indonesian people. The listing companies, with good governance and performance, could offer benefits to the community.

The minister called on the capital market players, such as listing companies, Self Regulatory Organization, and the Financial Services Authority (OJK), to jointly seek to improve the sense of public ownership of the capital markets.

"The stock market can be a vehicle for democratization of the Indonesian economy. All people can access the stock market properly," the minister remarked.

He noted that the government will continue to make efforts to support the stock market in terms of policy.

As a result, the capital market players could boost the nations development.

Vice President Jusuf Kalla had earlier inaugurated the first stock trade in 2017 at the Indonesian Stock Exchange (BEI) on Tuesday.

The event was attended by Finance Minister Sri Mulyani, Governor of Bank Indonesia Agus Martowardoyo, Head of the OJK Muliaman Hadad, and President Director of BEI Tito Sulistio.

"Happy New Year to all of us. I hope our economy can grow well in the midst of the global economic slowdown," the vice president remarked here on Tuesday.

The Jakarta Composite Index and the Indonesia Stock Exchange (IDX) benchmark grew by 15.32 percent last year, the highest in the bourses history and the second-highest in the Asia-Pacific region, OJK Chair Muliaman D. Hadad had earlier noted.

To this end, the vice president called on the BEI to streamline its system and to uphold public trust.

"This institution must maintain the trust of many parties," the vice president emphasized.

The IDX benchmark recorded a growth of 15.32 percent and closed at 5,296.71 points at the end of 2016.

Meanwhile, the amount of funds collected through BEIs trading in 2016 had reached Rp674.39 billion and US$247.50 million, the highest in the bourses history.


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