OVERVIEW

Origination from a need to gather funds for business expansion, European agricultural and plantation companies initiated capital market activities centuries ago. In addition to functioning as a fund collection medium, the capital market also provides a wider range of benefits and functions, including more efficient fund allocation and more transparent activities which can contribute to a more developed economy and increased state income.[1]

Due to their importance, capital markets rapidly developed during the 20th century, especially in the United States and Western Europe, including to the Netherlands which then introduced the concept of a capital market to Indonesia during the colonial era.[2]