Fathan Qorib, Robert Sidauruk
Muliaman D Hadad, Chairman of the Financial Services Authority (OJK) is predicting that Indonesia‘s long-term funding sector has a bright future considering the current and predicted increases in income per capita that should stimulate financial industries.
“Our financial services sector will continue to develop along with the increase in income per capita,” said Mr. Hadad during a seminar at Universitas Pelita Harapan on Wednesday.
Mr. Hadad stated that there are at least two main sectors as entry points for the development of national long-term funding, the capital market and insurance business.
These sectors will give new nuance to Indonesia’s financial sectors that have been stagnant for quite some times, and also encourage the banking sector for short-term funding, through such measures as the Mini Master Repurchase Agreement (MRA) between Bank Indonesia and Banks.
“The public needs insurance to protect their businesses, investment outlets and a strong capital market for investment,” said Mr. Hadad.
For the capital market sector, Mr. Hadad indicated that Indonesia is showing it is a promising market by becoming the second-largest capital market in ASEAN after Singapore. Based on data from the Indonesian Chamber of Commerce, Mr. Hadad notes that there are at least 1000 companies that could potentially enter Indonesia’s capital market.
In response to this optimistic outlook, the OJK is currently conducting market research to maximize the potential of Indonesia’s capital markets. The OJK is also encouraging more than 400 companies that are registered on stock exchanges to actively more actively involved in the capital markets.
For the insurance sector, Mr. Hadad explained that one effective way to develop long-term funding is to introduce micro-insurance and catastrophe insurance to public. In addition, he is also encouraging financial service providers to better open access to financial services to members of the public. By doing this, Mr. Hadad believes that long-term funding as alternative investment can be strongly developed.
(hot/kc)
Fathan Qorib, Robert Sidauruk
Muliaman D Hadad, Chairman of the Financial Services Authority (OJK) is predicting that Indonesia‘s long-term funding sector has a bright future considering the current and predicted increases in income per capita that should stimulate financial industries.
“Our financial services sector will continue to develop along with the increase in income per capita,” said Mr. Hadad during a seminar at Universitas Pelita Harapan on Wednesday.
Mr. Hadad stated that there are at least two main sectors as entry points for the development of national long-term funding, the capital market and insurance business.
These sectors will give new nuance to Indonesia’s financial sectors that have been stagnant for quite some times, and also encourage the banking sector for short-term funding, through such measures as the Mini Master Repurchase Agreement (MRA) between Bank Indonesia and Banks.
“The public needs insurance to protect their businesses, investment outlets and a strong capital market for investment,” said Mr. Hadad.
For the capital market sector, Mr. Hadad indicated that Indonesia is showing it is a promising market by becoming the second-largest capital market in ASEAN after Singapore. Based on data from the Indonesian Chamber of Commerce, Mr. Hadad notes that there are at least 1000 companies that could potentially enter Indonesia’s capital market.
In response to this optimistic outlook, the OJK is currently conducting market research to maximize the potential of Indonesia’s capital markets. The OJK is also encouraging more than 400 companies that are registered on stock exchanges to actively more actively involved in the capital markets.
For the insurance sector, Mr. Hadad explained that one effective way to develop long-term funding is to introduce micro-insurance and catastrophe insurance to public. In addition, he is also encouraging financial service providers to better open access to financial services to members of the public. By doing this, Mr. Hadad believes that long-term funding as alternative investment can be strongly developed.
(hot/kc)