Bappenas Encourages Strengthening of Stock Market to Achieve Golden Indonesia 2045 Vision

JAKARTA – The Minister of National Development Planning/Head of Bappenas, Suharso Monoarfa, emphasized the importance of the stock market's role in the financial sector. 

"The stock exchange plays a crucial role as a catalyst by providing a trading platform for financial instruments, enabling price determination through market mechanisms, facilitating more precise capital allocation, and providing financial and operational information of public companies to the general public," Minister Suharso explained when opening the Trading of the Indonesia Stock Exchange (BEI) in the context of Deepening the Financial Market for Indonesia's Economic Resilience at the Indonesia Stock Exchange building, Jakarta, on Wednesday (13/3).

One of Indonesia's economic transformation efforts towards achieving the Golden Indonesia 2045 Vision is through industrialization. This strategy requires the capital market to increase financing in the manufacturing sector. "Why do we want industrialists to list on the stock exchange? Because we are facing a threat, namely the contribution of the manufacturing industry sector to GDP is already below 25 percent. Therefore, we strongly hope that industrial players will list on the stock exchange," Minister Suharso emphasized. 

Meanwhile, the number of small and medium-sized enterprises (SMEs) as the sector employing up to 97 percent of the workforce in Indonesia that have been listed on the stock exchange is still relatively small, with only 100 SMEs in 2022, lower than Singapore and Thailand.

The President Director of the Indonesia Stock Exchange, Iman Rachman, mentioned that capital market conditions throughout 2023 to early 2024 still showed positive growth. "The IHSG has grown by more than one percent, indicating an increase compared to the end of last year. The Indonesia Stock Exchange ranks ninth among the world's exchanges with the number of investors reaching 12.5 million," explained President Director Iman.

The Ministry of National Development Planning/Bappenas has designed the financial sector policy direction in the final draft of the 2025-2045 National Long-Term Development Plan (RPJPN) with the market capitalization to Gross Domestic Product (GDP) target ratio reaching 120 percent of GDP by 2045. Meanwhile, in the short term, Indonesia is targeting an economic growth of 5.3 to 5.6 percent in 2025. To achieve this target, Indonesia needs to invite Rp7,643.4 to 7,711.5 trillion in investments in 2025. 

"Strengthening the capital market is expected to contribute more significantly and help enhance domestic economic resilience, thus achieving the economic growth targets," concluded Minister Suharso.