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Box 4.8: Indonesia’s Capital Market and NBFI Master Plan (2010-2014)
This master plan is an integral part of previous
ones. Rapid changes in the dynamic global financial
systems that are affecting the Indonesian financial
landscape have posed more complex challenges. To
overcome these, the master plan’s strategies and
work plans aim to promote a sophisticated state of
development in information and communication
technology, a bigger and more rapid flow of capital
into Indonesia’s financial system, a conglomerate of
financial services that is more widespread and
integrated into a global network system, and
advancement in financial innovation that will
trigger various financial products with more
complex risk profiles.
Bapepam has set 5 objectives to address the various
challenges faced by the capital markets and NBFIs,
both domestic and international. These objectives
are elaborated in a number of strategies and
programmes that are contained within well-
organised and measurable action plans.
Objective 1: Easily accessible, efficient and
competitive source of funds
Strategy 1 - Reducing constraints faced by business
communities in accessing the capital markets for
funds.
Strategy 2 - Increasing public access to finance and
guarantee institutions.
Strategy 3 - Improving the role of professionals,
supporting institutions and underwriters in public
offerings.
Objective 2: A conducive and attractive
investment climate as well as reliable risk
management
Strategy 1 – Increasing the distribution and quality
of information disclosure.
Strategy 2 – Encouraging the diversification of
capital market instruments and NBFI service
schemes.
Strategy 3 – Developing Shariah-compliant capital
markets and NBFIs.
Strategy 4 – Improving the ease of transactions.
Strategy 5 – Developing schemes to protect
investors and customers.
Strategy 6 – Developing a secondary market for
bonds and sukuk as well as a supervisory
mechanism.
Objective 3: A stable, resilient and liquid
industry
Strategy 1 – Increasing market players’ quality.
Strategy 2 – Encouraging good corporate
governance practices.
Strategy 3 – Improving the capabilities of the risk-
management industry.
Strategy 4 – Improving supervision over industry
players.
Strategy 5 – Improving the domestic investor base
and long-term funds.
Objective 4: Fair and transparent regulatory
framework which guarantees legal certainty
Strategy 1 – Improving quality of legal
enforcement.
Strategy 2 – Harmonising regulations among
industries and meeting international standards.
Strategy 3 – Drafting regulations based on the
needs and development of the industry.
Strategy 4 – Improving the quality and
transparency of financial information of
participants in the capital markets and NBFIs
Objective 5: A credible, reliable international-
standard infrastructure
Strategy 1 – Developing an integrated securities
trading system (straight-through processing).
Strategy 2 – Developing a reliable information
system.
Sources: Indonesian Capital Market Supervisory Agency (Bapepam in Indonesian acronym), MOF