Jakarta, Indonesia Sentinel — Indonesia’s financial markets are eagerly awaiting the formation of President Prabowo Subianto’s new cabinet, with hopes that the administration will prioritize the development of financial technology (fintech) and strengthen the country’s digital investment ecosystem. These advancements are seen as vital for promoting more inclusive financial participation and bolstering the nation’s financial sector.
Vinko Satrio Pekerti, Head of Customer Literacy and Education at Kiwoom Sekuritas Indonesia, stated that initiatives supporting fintech growth are essential to increasing retail investor participation in the stock market. This would energize trading activity and help sustain the expansion of Indonesia’s financial sector. “Boosting retail investor involvement will reinforce the fundamentals of the stocks traded on our exchange,” Vinko explained on Sunday (October 20, 2024).
In addition to fintech, market players are also looking for reforms in renewable energy, education, and healthcare, which are expected to serve as long-term economic growth catalysts. “These reforms, in turn, will strengthen the underlying fundamentals of stocks on our exchange,” Vinko added.
Market participants see supportive regulations as key to enabling companies to go public and providing better investor protections, both of which are crucial for attracting more foreign and domestic investors to Indonesia’s capital markets. “This is especially important amid the growing threat of online gambling activities, which are draining liquidity from our financial system,” Vinko warned.
Beyond regulatory support, industry players and market analysts hope the new administration will introduce pro-business policies that encourage corporate expansion through various market instruments. Initial public offerings (IPOs), bond issuance, sukuk (Islamic bonds), and Medium Term Notes (MTN) are among the tools expected to play a central role in boosting market activity.
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“We anticipate an increase in corporate bond issuance to finance long-term projects, especially with national infrastructure initiatives likely to continue under the new government,” Vinko said.
Overall, optimism surrounding President Prabowo’s upcoming cabinet is based on the potential for structural reforms that could lead to sustained economic growth and a more stable financial environment over the next several years.
(Becky)
