The Financial Services Authority (OJK) said that Indonesia's economic recovery is getting better and the handling of the spread of the Covid-19 pandemic has increased investor confidence in Indonesia's economic conditions going forward. Chairman of the OJK Board of Commissioners Wimboh Santoso said the Indonesian economy grew positively by 7.07 percent (yoy) in the second quarter of 2021 and the government estimates that by the end of the year growth will reach 3.7 to 4.5 percent. "We also note that there is a shift in the preferences of foreign investors from government securities (SBN) to the Indonesian capital market, which illustrates investor confidence in the prospects for Indonesia's economic recovery," he said in an official statement as quoted on Sunday (31/10).
According to him, investor confidence in the capital market and the Indonesian economy can also be seen from the value of fundraising as of October 26, 2021, amounting to IDR 273.9 trillion and 40 new issuers that have made public offerings. This amount exceeded the acquisition in 2020 of Rp 118.7 trillion. In addition, the capital market also recorded a surge in the growth of capital market investors, especially from the millennials. As of September 21, 2021, there were 6.4 million investors in the Indonesian capital market or a growth of 100.51 percent (yoy). "Therefore, we invite you to invest in Indonesia, especially in the capital market and enjoy good investment returns," said Wimboh. According to him, the Indonesian government has provided many investment incentives such as a two percent reduction in corporate income tax rates for issuers, a tax reduction on corporate bond interest from 20 percent to 10 percent and also an omnibus law that greatly simplifies licensing for global investors.
In addition, the government also continues to build infrastructure to facilitate access and improve efficiency which will increase profits for investors. In the future, OJK will seek to encourage economic growth by optimizing the role of the capital market, among others through supporting the formulation of accommodative policies for start-ups and unicorn-scale technology companies to conduct IPOs on the stock exchange, establishing Securities Crowdfunding (SCF) for MSMEs, issuing a regulatory framework for Digital Banks. , update peer to peer lending settings and review insurance settings. In addition, the authorities also continue to open up access to the capital market for MSMEs, which absorb a lot of labor and are export-oriented and environmentally friendly so that they can accelerate economic recovery. "OJK is preparing a policy regarding Multiple Voting Shares (MVS) so that start-up owners can maintain their business development in accordance with the company's initial vision and mission," he said.
