VP launches national "Love Capital Market" campaign

"At present, the local investors hold around 40 percent of the shares, while the rest are held by foreign investors. So, profits of the issuers will go abroad," Jusuf Kalla said.
Jakarta (ANTARA News) - Vice President Jusuf Kalla officially launched a nationwide campaign titled, "Love Capital Market" (Cinta Pasar Modal) here on Wednesday.

The campaign is sponsored by the stock exchange company PT Bursa Efek Indonesia, clearing company PT Kliring Penjamin Efek Indonesia, and the custodian company PT Kustodian Sentral Efek Indonesia, among several other related associations.

"This afternoon, we are talking about love that everybody must have experienced, the feeling which includes loving, liking, remembering, and wishing to be with someone. But, this time, it is about love for the capital market. Love may not be blind, and therefore, we must follow and study its development and the industry," the vice president stated during the launch event.

Jusuf Kalla hoped that the program would increase participation of local human resources and investors in the capital market, so that the share ownership would not be dominated by foreigners.

"At present, the local investors hold around 40 percent of the shares, while the rest are held by foreign investors. So, profits of the issuers will go abroad," he pointed out.

Kalla, however, reminded that it was important to exercise caution while investing in the capital market as it is a high-risk industry.

"Earnings could be high, but the risks are also high. A cautious approach is needed to evaluate them," he remarked while addressing 5,066 students from 27 universities who attended the event.

He emphasized that students must have sound knowledge of the capital market, which will help to draw greater interest.

Nurhaida, the chief executive of capital market supervision of the Financial Service Authority (OJK), noted on the occasion that the "Genta Pasar Modal" could improve the quality of human resources in the industry.

The movement is intended to increase literacy about the capital market through education at capital market schools, investor forums, and through social media, which is a long-term process.

"Based on our survey last year, public investment in the capital market is still very small at below one percent, while the nations 134 million middle class population offers potential to increase the number of domestic investors," she emphasized.

In the meantime, OJK Chairman Muliaman D. Hadad stated that the Indonesian middle class has often been identified as a consumer group, which is largely consumptive with regard to its lifestyle, including choices of investment.

"Their need to invest is quite big. But, on the other hand, they still have minimum knowledge on how to invest in the financial sector, especially the capital market," he affirmed.

Through the implementation of the "Genta Pasar Modal," it is hoped that various community members, who still have limited knowledge about the financial market, including middle class members and students, will help to develop the countrys capital market in the future, he added. (*)

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