Capital Markets
From The Report: Indonesia 2020
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The development of Indonesia’s capital markets has been buoyed by strong investor interest and high, consumption-led economic expansion on the back of a push to boost annual GDP growth. Ongoing reforms hope to liberalise Indonesia’s financial landscape and provide a legal and regulatory basis for product diversification and deeper institutional investment. Nevertheless, slower regional growth as a result of the Covid-19 pandemic looks likely to strain liquidity and test debtors’ ability to repay, while also possibly acting as a barrier to fundraising. In the medium term, the proliferation of digital financial tools will continue to bring new retail players to the market – a move that has encouraged the government to include financial literacy education alongside its reforms to increase the participation of Indonesians in order to deepen the market. This chapter contains interviews with Inarno Djajadi, President Director, Indonesia Stock Exchange; and Jemmy Paul Wawointana, President Director, Sucor Asset Management.

Articles from this Chapter

Overview

Market forces: Strong GDP growth, ongoing reforms and a more diversified product offering is set to boost the provision of financial services
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The development of Indonesia’s capital markets has been buoyed by strong investor interest and high, consumption-led economic expansion on the back of a government push to boost annual GDP growth. Ongoing reforms hope to liberalise Indonesia’s financial landscape and provide a legal and regulatory basis for product diversification and deeper institutional investment. As with most emerging markets around the world, the country’s sound economic fundamentals stand to be tested by the global…

Interview

Tailored offerings: Inarno Djajadi, President Director, Indonesia Stock Exchange (IDX), on supporting small-scale entrepreneurs
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Interview:Inarno Djajadi How would you rate the fundraising performance of Indonesian capital markets in 2019? INARNO DJAJADI: The IDX launched several successful initiatives in 2019, which included the initial listing of the infrastructure investment fund on April 15. New securities were also listed, including 55 stocks, 14 exchange-traded funds, two asset-backed securities, two new corporate bonds and two real estate investment trusts. Overall, Indonesia achieved the highest number of initial…

Interview

Encouraging developments: Jemmy Paul Wawointana, President Director, Sucor Asset Management, on building investor confidence
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Interview:Jemmy Paul Wawointana Where can technology accelerate growth among Indonesia’s capital markets? JEMMY PAUL WAWOINTANA: Financial technology (fintech) companies have been growing exponentially since 2015. The total number of Indonesian capital market investors grew by 53% over the course of 2019. Interestingly, 78% of mutual fund investors were fintech companies. In a short period of time we have seen very encouraging developments. Admittedly, young investors may account for a…