VP opens IDX trade 2017

Jakarta-wapresri.go.id Today at 9.00 am sharp, Vice President Jusuf Kalla officially inaugurated the 2017 Indonesia Stock Exchange (IDX) trading.

“Despite global economic slowdown, I hope the Indonesian capital market will be better this year, with the cooperation, hard work, improvement of the entire system, and maintenance of public confidence,” said the Vice President shortly before pressing a button to formally mark the opening of the Indonesian stock trading this year.

The Vice President added that the economic slowdown occurred in almost all countries. Many countries, he continued, tend to apply economic system that is more conservative and protectionist from previously being liberal.

“While many other (countries) are protectionist, it is impossible for us to be widely open,” he affirmed.

In his speech, the Vice President also asked stock market and business players not to be too anxious with political turmoil in major countries such as the United States with the election of Donald Trump as a president which is believed to have impact on the international business climate, including in Indonesia.

“As a large country, it is not possible (that the United States) will (act) as easy as that. So, we do not need to worry about what Trump said,” said the Vice President.

The Vice President then advised, the main problem of the country that potentially create disruption is economic inequality.

Therefore, he continued, the government continues to reduce this gap, among others by lowering bank interest rates gradually to below 10 percent.

According to the Vice President, there should be a balance between efforts to attract people to run the business and efforts to attract investment.

“I always say, the stock market is important, but the Pasar Senen and Pasar Tanah Abang (traditional markets –red) are more important,” he argued.

The Vice President said, when the gap is diminished, justice will prevail. With justice, he added, will come peace and hope that is essential for the growth of stock index.

Earlier, in his short presentation, Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Muliaman D. Hadad said the capital market in Indonesia in 2016 was encouraging with an increase in the Composite Stock Price Index (CSPI) amounted to 15.32 percent.

“(It) is the highest record in the history of capital markets in Indonesia and the second highest in the Asia Pacific region,” said Hadad.

Capital markets, further Hadad said, are an alternative investment for the community as well as a source of long-term finance other than banks.

On the same occasion, in her speech, Finance Minister Sri Mulyani was delighted with the achievements gained by the stock exchanges in Indonesia.

However, Sri Mulyani told, this increase is expected not only on the market capitalization but also on the number of companies that went public.

“In 2016, there were 540 IPOs. It increased from 524 in 2015, which is just as many as 16 new issuers. It is lowest in the last seven years, “he said.

In the face of global uncertainty, Sri Mulyani asserted, the composition of economic growth from domestic sources of financing should be strengthened. This, according to her, what makes investment have an important role.

The government, the Minister added, continues to make efforts to improve the investment climate, among others through 14 packages of economic policy and their implementation, investment in infrastructure, simplification and de-bureaucratization, as well as policies to boost connectivity between regions in Indonesia which have huge potential for growth.

“The momentum of economic growth would need to be supported by the Indonesian capital market,” she concluded.

Also present at the event, Head of the Investment Coordinating Board (BKPM) Thomas Lembong, President Director of IDX Tito Sulistio, Head of the Secretariat of the Vice President Mohammad Oemar, and Deputy for the Support of Economic Policy, Infrastructure, and Maritime of the Secretariat of the Vice President Tirta Hidayat.