Stock market expected to support national economy

Jakarta (ANTARA News) – The Financial Services Authority expressed hope that the stock industry could support the national economy by investing in the infrastructure development, the agencys head of capital market supervision Nurhaida said here on Saturday.

“The stock market could engage in this development program as the cost of building new infrastructure will reach at least Rp5 thousand trillion, according to the National Mid-Term Development Plans estimation,” she added.

A capital market needs to be more financially liquid in order to support the long-term infrastructure development program, Nurhaida noted.

She remarked that the authority would cooperate with the industrys stakeholders to build trust among investors and increase their number in order to strengthen the markets liquidity.

“A rise in investors number and a greater trust among stakeholders will support market growth. During the past years, the market had achieved an outstanding record by listing around one million investors. However, the number only covers 20 to 30 percent of investor in Singapore and Malaysia,” Nurhaida revealed.

The number of domestic investors remains low at only 0.39 percent of 258 million people. Thus, the government has to step up its effort to introduce the capital market to the citizens, she pointed out.

Meanwhile, Indonesia Stock Exchanges Development Director Nicky Hogan stated that a strong investment basis would enable the domestic market to mobilize third-party funds, which further support the national economy.

“We not only improve the literacy of capital market but also commit to expand the investor base,” Hogan reiterated.

Source: Antara News