The Indonesian capital market continues to evolve, but experts believe it still needs deeper reform to boost investor confidence and participation. While the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX) have provided a solid foundation, market participants are now urging regulators to implement practical breakthroughs that address critical issues such as transparency, accessibility, and financial literacy.
OJK’s Vision for the Indonesian Capital Market
Laksono Widodo, President Director of BRI Danareksa Sekuritas, emphasized the importance of broadening public education and streamlining access to investment. He stated that the future direction of development should “focus more on comprehensive education for the public and the provision of easier investment access.”
According to Widodo, one solution lies in simplifying the account opening process. He suggested leveraging existing banking data to open Customer Fund Accounts (RDN), removing redundant steps for investors. “One way to ease access is through regulations that make account opening more seamless. For instance, utilizing existing banking sector data owned by investors as the information base for opening Customer Fund Accounts [RDN],” he explained, as reported by Bisnis.com.
He also hopes that financial institutions can integrate the process of opening savings accounts and RDNs simultaneously, further enhancing investor convenience.
Easier Investment Access Through Regulatory Reform
Regulatory reform plays a crucial role in making the Indonesia capital market more inclusive. Simplifying administrative processes would remove barriers for potential retail investors, particularly those unfamiliar with traditional brokerage systems. Widodo pointed out that smoother onboarding would encourage broader participation.
In addition to improving access, OJK’s long-term vision includes strengthening coordination between banking and capital market infrastructures. Seamless integration can reduce friction for new investors, making it easier for them to enter the market and begin trading confidently.
Boosting Transparency in Stock Trading
Beyond accessibility, transparency remains a pressing concern. Widodo called for clearer criteria and timelines for stock suspensions to minimize uncertainty and speculation in the market. He noted, “The reasons for suspensions could be explained in more detail, particularly regarding the indicators or quantitative limits used.”
He also criticized inconsistent suspension durations, which often confuse investors. “Suspension durations tend to vary across cases, often raising questions from investors,” he said. To address this, he suggested additional communication channels where investors can directly clarify decisions related to specific suspensions.
Widodo further emphasized that transparency should extend to informing investors about the resolution timeline and specific conditions needed for a suspension to be lifted.
Solving Persistent Issues in the Equity Market
Widodo highlighted several ongoing challenges in the equity market. These include low free float levels that enable stock manipulation, extreme price volatility, and uneven information distribution. He also raised concerns about weak oversight on corporate actions and the risk of market bubbles.
While regulations such as POJK No. 22/2023 aim to enforce transparency for companies listing on the IDX, he believes these rules must be complemented by investor education. “Investors must conduct proper analysis before choosing investments that suit their needs. Regulations can only work optimally if investors also understand their rights and risks,” Widodo said.
Strengthening the Foundation of the Indonesia Capital Market
Looking ahead, Widodo remains optimistic about Indonesia’s market potential despite global economic headwinds. He pointed to controlled inflation, interest rate cuts, and government stimulus as signs of domestic stability. These conditions create opportunities for long-term investment in sectors like primary consumer goods, infrastructure, and energy.
“Recommended strategies include diversification, gradual accumulation during market corrections, and medium- to long-term investing—while staying aware of global volatility and managing risks accordingly,” he advised.
OJK’s initiatives, if executed with consistency and transparency, could significantly strengthen the foundation of the Indonesian capital market. By addressing core issues of access, literacy, and trust, the market can become a more attractive and inclusive environment for investors of all levels.
Source: market.bisnis.com
Image: anyaberkut/Getty Images
