The Indonesian Stock Price Index (IHSG) has been under pressure in recent times, with the dominance of large asset companies affecting its movements. Fauzan Luthsa, an Analyst at the Institute of Strategy, expressed concern about the lack of diversification among issuers, highlighting the negative impact on the national economy. This imbalance in the capital market structure, according to Luthsa, is a long-term issue that needs to be addressed.
Challenges of Limited Issuer Diversification
Luthsa emphasized the importance of encouraging medium-sized companies to enter the market, as they are vital drivers of employment, local innovation, and increased purchasing power. He pointed out that these mid-sized companies serve as the backbone of the national economy and have a direct social impact. By promoting the listing of such companies on the stock exchange, there will be a significant boost to the economy, especially in the current global and domestic economic challenges.
Prabowonomics and the Path to Economic Growth
In line with the concept of Prabowonomics, Luthsa stressed the need for the stock exchange to support the growth of medium-sized companies. He explained that the public listing of these companies would lead to business expansion, ultimately benefiting the economy as a whole. With the government requiring funds for its various programs, the presence of medium-sized companies in the capital market would create a multiplier effect, generating tangible economic growth and driving the wheels of the economy forward.
In conclusion, the limited diversification among issuers in the stock market poses a significant challenge to the national economy. By promoting the participation of medium-sized companies in the market, Indonesia can achieve a more balanced and sustainable economic growth trajectory. It is essential for all stakeholders, including regulatory bodies and market participants, to work together towards fostering a diverse and resilient capital market ecosystem for the long-term prosperity of the nation.
