Indonesia' capital market is targeting to raise Rp190 trillion (US$13.38 billion) by 2020, from Rp112.4 trillion currently - Photo: TheInsiderStories.

JAKARTA (TheInsiderStories)Financial Service Agency (FSA) is targeting the capital inflows go to Indonesia’ capital market could reach Rp190 trillion (US$13.38 billion) in 2020, said the chief today (08/23). Until August 19, total capital inflows has reached Rp112.4 trillion.

The funds, said the chairman Wimboh Santoso, enter the market through 104 public offering, including 29 new issuers. During January to August 19, he added, total investment products worth of Rp805 trillion has been registered at the bourse. The amount higher 7.6 percent compared to same period in 2018.

On a year-to-date basis, the foreign investors net buy in stock worth of Rp61.1 trillion, while in the government bond Rp113 trillion. In details, until August 2, public offering values Rp34.15 trillion, consisting of initial public offering (IPO) proceeds Rp8.50 trillion and rights issue of Rp25.66 trillion. Total corporate bonds issuances recorded Rp67.65 trillion and SUKUK corporate Rp7.37 trillion.

Santoso also emphasized that capital market players must aggressively take an advantage of the current opportunity in the midst of an easing of monetary and economic policies also the weakening of global economic trends.

He emphasized the commitment of the agency and Self Regulatory Organization, such as Indonesia Stock Exchange, Indonesian Clearing and Guarantee Corporation, and Indonesian Central Securities Depository, to enhance the role of the capital market. This role includes efforts to educate the public in the context of increasing economic growth and equity.

At the same occasion, the coordinating minister for economic affairs Darmin Nasution revealed since President Soeharto era in 1977, market capitalization values grow significantly and now has reached Rp7.17 trillion.

“After 42 years, our market capitalization has grown 2,600 times in 42 years. At the same period, the composite index had grown by 6,280 percent,” the minister said.

“After 42 years the capital market was reactivated, the Indonesian capital market has even recorded single investor identification (SID) reaching one million people currently,” he adds.

Indonesian Central Securities Depository data shows, as of December 2018, the number of SID rose 44 percent to 1,617 367 from 1,122,668 in 2017. Total investors in the stock market 2.10 million and  mutual funds mutual funds 1.4 million.

US$1=Rp14.200

Written by Lexy Nantu, Email: lexy@theinsiderstories.com