In the fit & proper test of the Board of Commissioners of the Financial Services Authority (OJK) on commission VI, President Director of the Indonesia Stock Exchange (IDX) Inarno Djajadi explained the capital market target for the next 5 years.
He targets the market capitalization or market cap of the capital market to reach IDR 15,000 trillion with stock transactions reaching IDR 25 trillion in 2027.
Inarno targets that between 2022 – 2027 there will be massive growth in the capital market. Among them is the growth in market capitalization from around Rp. 6,970 trillion to more than Rp. 15,000 trillion. The CAGR is projected to grow in the range of 8.85 percent.
Thus, the market capitalization of the JCI covers 60 percent of GDP. In addition, Inarno also targets daily stock transactions to reach IDR 25 trillion by 2027.
For information, daily stock transactions are currently in the range of Rp. 13 trillion. So there is a potential CAGR growth of 9.76 percent.
Inarno added that the target was supported by the growth in the number of investors from 7.5 million to 20 million investors. In addition, he is optimistic that the number of listed companies will increase to 1,100 companies.
“The number of listed companies now is around 780, we hope that later it can reach 1,100 companies. In addition, we expect the number of investors to increase to more than 20 million investors,” he said on Thursday (7/4/2022).
To achieve this target, it is necessary to at least have additional listed companies of up to 60 units per year. In addition, there is a need for digital education innovation to support investor growth.
The reason is, that he admits that currently, inclusion and capital market literacy is still lagging behind other financial sectors such as banking.