Indonesia Stock Market Growth has become a key focus as IDX aims to add 2 million new investors by 2025. This ambitious plan reflects the market’s expanding potential and its importance to Indonesia’s economic development. By targeting more domestic participants and encouraging IPOs, the Indonesia Stock Exchange seeks to deepen market liquidity and increase investor engagement.
Indonesia Stock Market Growth: A Key Driver for 2025
In 2024, the number of capital market investors in Indonesia reached 14.38 million, demonstrating steady growth. According to Samsul Hidayat, the President Director of the Indonesia Central Securities Depository, domestic investors accounted for 99.73% of this total, with foreign investors representing only 0.27%.
Despite their small proportion, foreign institutional investors controlled 42.49% of the assets in C-BEST (The Central Depository and Book-Entry Settlement System).
“Most, or almost all, of the foreign investors are institutional investors. In terms of numbers, they are relatively small. However, when viewed from the perspective of assets, [they] control 42.49% of the assets in C-BEST,” explained Samsul during the IDX Trade Closing Press Conference for 2024 in Jakarta on December 30, 2024.
Samsul also highlighted that, as of December 27, 2024, stock investors using C-BEST totaled 6.37 million, showing the increasing involvement of Indonesians in the stock market. These figures underscore the market’s potential as IDX targets significant growth in the coming year.
IDX’s Target: 2 Million New Investors
With a goal of 2 million new investors by 2025, IDX seeks to enhance participation and broaden capital market accessibility. To support the goal of adding 2 million new investors, the Indonesia Stock Exchange announced plans for 66 companies to go public through initial public offerings (IPOs) in 2025.
Iman Rachman, the President Director of IDX, emphasized the significance of these targets during a press conference on December 30.
“If we look at the target for stocks alone, there are 66 new IPOs planned with a goal of 2 million new investors,” said Iman, as reported by jawapos.com.
“Achieving this target will certainly require collaboration among stakeholders, including policymakers and financial institutions, to promote Indonesia’s economic growth,” he continued.
This initiative highlights the importance of broadening investment opportunities and engaging both domestic and foreign participants in the growing capital market.
How IPOs Drive Market Growth
Initial public offerings (IPOs) allow companies to raise capital, expand visibility, and attract investors, strengthening market liquidity.
In 2022, Indonesia led Southeast Asia with 60 IPOs, reflecting a vibrant market. However, the IPO market faced a slowdown in 2024, with only 34 IPOs recorded by September. This marks a significant drop compared to 2023, which saw a record 79 IPOs raising IDR 54.1 trillion.
“For IPOs, this year has indeed declined compared to last year, but there are still 21 prospective companies in the pipeline,” Iman explained. Despite the decline, optimism remains strong as IDX aims to revitalize the market through strategic initiatives.
The planned IPOs in 2025 will likely focus on technology, healthcare, and e-commerce, fostering growth in these vital sectors. Startups and state-owned enterprises are expected to drive positive market sentiment, encouraging broader participation. By addressing challenges and leveraging IPO potential, IDX aims to build a more resilient and inclusive stock market.
Challenges and Opportunities Ahead for IDX
IDX faces several challenges in achieving its ambitious goals for 2025. Economic uncertainties, including global market volatility and high interest rates, pose significant hurdles.
Regulatory adjustments may also be required to ensure a stable and transparent environment for investors. Furthermore, the decline in IPO activity in 2024 highlights the need for stronger initiatives to attract companies and bolster market confidence.
On the other hand, numerous opportunities are emerging, offering a chance to strengthen and diversify the capital market. The growing participation of domestic investors signals a shift toward a more resilient capital market. Emerging sectors, including technology, healthcare, and renewable energy, are commonly seen as areas with significant growth potential globally, including in Indonesia.
By enhancing financial literacy programs and leveraging digital platforms, IDX can empower more Indonesians to participate in the market. Collaboration among stakeholders will be crucial in addressing challenges and unlocking the full potential of Indonesia’s capital market.
Source: market.bisnis.com, jawapos.com, swa.co.id
Image: Antara/Asprilla Dwi Adha
