JAKARTA (TheInsiderStories) – In the first trading of 2019, the Jakarta Composite Index (JCI) dropped 0.27 percent to 6,178.03 compared to last week. While Rupiah stabled at 14,470.05 against the US dollar from yesterday.
Coordinating Minister for Economic Affairs Darmin Nasution assessed the main problem come from the global side and from the domestic side. Internally, the market deepening program, that has been carried out in the country in years, he said, still has not been successful. One reason is a demand-side problem.
“From the past decades it has always been said to be deepening the market, but we have never been successful enough,” the senior minister said at the opening trading of Indonesia Stock Exchange (IDX) on Wednesday (01/02).
He continued, the effort to deepen the market must be done in the future to convince investors to invest in the local bourse. Expansion of various instrument at IDX will increase the number and quality of investors, urged Nasution.
He revealed, during 2018, Indonesia faces various challenges like current account deficit also external challenges in the form of global uncertainty and world economic turmoil triggered by normalization of United States (US) monetary policy, trade war, and a decline in global commodity prices.
According to him, these things cause volatility on the JCI and foreign exchange market, including a decline in the number of issuers. But, he appreciates the Financial Services Authority (FSA), Self Regulatory Organizations, and all stakeholders efforts, who always try quickly and hard to face the challenges.
To make Indonesian capital market more attractive, Nasution encourages small and medium enterprises, including startups to obtain funding from the capital market. He said, “FSA has policies with a tax based, equity-based mechanism that support start-ups. This policy can direct our financial technology towards a healthier direction.”
Over the past year, there were 57 new issuers listed on the IDX, bringing the total issuers to 619 companies and number of investors have reached 1.6 million investors. Chairman of FSA Wimboh Santoso added that the agency would not be selective strictly in inviting companies to enter the stock market.