In 2022, despite being faced with several global challenges, the Indonesian capital market managed to record several positive achievements. This can be seen from the growth of the stock index to the number of capital market investors.
The Composite Stock Price Index (IHSG) reached the level of 6,850.62 on December 28, 2022 (an increase of 4.09 percent from the position of December 30, 2022). The JCI growth even broke a new record, namely at the level of 7,318.016 on 13 September 2022.
Meanwhile, according to data from the Indonesia Stock Exchange (IDX), market capitalization (market cap) on 28 December 2022, reached IDR 9,509 trillion, an increase of 15.2 percent compared to the position at the end of 2021, which was IDR 8,256 trillion. Previously, the market cap for the Indonesian capital market had also broken a new record of IDR 9,600 trillion on 27 December 2022.
Furthermore, the frequency of daily transactions has also reached 1.31 million transactions, an increase of 1.1 percent compared to the end of 2021. “This is the highest value when compared to exchanges in the ASEAN region over the last four years. Growth is also reflected in the average daily transaction volume which has reached 23.9 billion shares, up 16 percent compared to the end of last year,” said Iman in a press conference presentation on December 29, 2022.
Number of Investors
This positive achievement was also reflected in the increasing public interest in investing in the Indonesian capital market. The total number of investors in the Indonesian capital market as of December 28 2022 has increased 37.68 percent to 10.31 million investors from the previous 7.48 million investors at the end of December 2021. This number has increased almost 9 times compared to 2017. the growth in the number of retail investors also impacted the dominance of retail investors in daily trading activities on the IDX which reached 44.9 percent.
The increase in the number of investors is also the result of the efforts of the IDX and stakeholders in socializing, educating, and literacy to society. As of December 28, 2022, 11,253 educational activities have taken place throughout Indonesia, with more than 1.7 million participants. Of all these activities, more than 74% of activities are carried out online, and outreach activities to other stakeholders.
Number of Initial Public Offerings (IPO)
The increase in the number of investors was also supported by the rise in the number of listed companies. In 2022, the company’s interest in obtaining long-term funding through the capital market will continue to increase. As of December 28, 2022, there have been 59 listed companies that have conducted an Initial Public Offering (IPO) and listed their shares on the Indonesian Stock Exchange (IDX). Thus, by the end of 2022, 825 companies had listed their shares on the IDX.
Total fund-raised IPO shares reached IDR 33.06 trillion so far this year. This achievement is the highest since the privatization of the Stock Exchange in 1992. In addition, this achievement is also the most IPOs in the ASEAN Region for 4 consecutive years since 2019.
Capital Market Development Targets
The Financial Services Authority (OJK) as the Indonesian capital market regulator is also optimistic about the growth of the Indonesian capital market. A number of projections for the next 5 years are set, starting from the growth targets of issuers, investors, to market capitalization. OJK in its 2023 – 2027 Indonesian Capital Market Roadmap targets 1,100 listed companies and more than 20 million investors, with a market capitalization of IDR 15,000 trillion. Of course, this is a positive signal as well as a big opportunity for the company to go IPO.
(Abstracted by: Lavy El Harisy)