It is not an easy task, but it must be done.
Jakarta (ANTARA) - The significantly positive performance of Indonesia’s stock market in 2022 will be a good capital for facing any challenging economic and financial conditions in 2023, Finance Minister Sri Mulyani Indrawati has said.

"We hope that the (stock trade in) 2022, which was closed in a very resilient condition, will be good preparation for facing the (situation in) 2023," she remarked at the inaugural Indonesia Stock Exchange trading session for 2023 here on Monday.

There will be many tough challenges throughout 2023, including mitigating the impacts of global inflation, preventing a recession, as well as expediting post-COVID-19 economic recovery, she said.

Hence, the government will strive to strengthen the integrity, accountability, and credibility of various economic institutions in 2023, for instance, by issuing the Law on Financial Sector Development and Strengthening (P2SK).

Furthermore, the government has also tasked the Financial System Stability Committee (KSSK) with consistently building a strong, stable, credible, accountable, and trusted financial sector foundation in 2023.

“It is not an easy task, but it must be done. This task is also aimed at optimizing the huge capital market potential in Indonesia," the minister emphasized.

On the same occasion, chairperson of the board of commissioners of the Financial Services Authority (OJK), Mahendra Siregar, said that improving the integrity, accountability, and credibility of financial institutions must be prioritized in 2023.

He further said he expected the effort to push up the number of capital market investors, which has currently reached 10.3 million, reflecting an increase of ten-fold or one thousand percent in the past five years.

However, the number of investors is only four percent of Indonesia's total population, thus there is still a huge market opportunity to be optimized, he added.

In addition, Indonesia's market capitalization, which has reached 50 percent of the national gross domestic product (GDP), or equivalent to Rp9,500 trillion or US$600 billion, must also be increased.

"Although our market capitalization is 50 percent of our national GDP, it is still far behind (the market capitalization of) other ASEAN countries, which has reached above 100 percent," Siregar added.

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Translator: Astrid Habibah, Uyu Liman
Editor: Rahmad Nasution
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