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Anies-Muhaimin highlights role of capital market for economic development
Anies Baswedan-Muhaimin Iskandar's economic targets include an economic growth rate at 5.5 to 6.5 percent, an inflation rate of 2 to 3 percent, and a manufacturing industry contribution of 22 to 23 percent.
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Presidential candidate pair Anies Baswedan (left) and Muhaimin Iskandar walk on stage during the third 2024 presidential election debate at Istora Senayan in Jakarta on Jan. 7, 2024. The third debate covered issues of international relations, defense and security. (Antara/Aditya Pradana Putra)
The capital market is the key to developing Indonesia's economy, according to the Anies Baswedan-Muhaimin Iskandar campaign team.
"Looking at our economic targets, we should prioritize the capital market," said Wijayanto Samirin, an economic adviser at the campaign team on Monday, as quoted by Antara, adding that the capital market has a vital role in building long-term investments.
Anies-Muhaimin has several economic targets, such as an economic growth rate of 5.5 to 6.5 percent, an inflation rate of 2 to 3 percent, and a manufacturing industry contribution of 22 to 23 percent. Additionally, the pair wants to improve the corruption perception index to be at a range of 44 to 46.
The candidate pair also aims to achieve a tax ratio of 14 percent, a debt-to-GDP ratio of up to 30 percent, a logistics cost-to-GDP ratio of between 16 and 18 percent, and an incremental capital output ratio (ICOR) of 5 percent.
"We aspire to achieve 'Golden Indonesia,' not only in terms of a high GDP [gross domestic product] per capita but also an Indonesia characterized by prosperity for everyone," said Wijayanto.
He believes that the capital market can be used to encourage companies to be more transparent and apply good corporate governance. The capital market is also an effective tool for wealth distribution, although currently, not everyone in Indonesia can benefit from it.
"In many countries, even in welfare states, retirees can still live well because they have assets in the capital market. This is what we aim to achieve," Wijayanto said.
The Anies-Muhaimin team said it understands that transforming the capital market requires a total overhaul of the economy. To enhance the capital market, the government has to create consistent regulations, eradicate corruption and improve the quality of bureaucracy. Additionally, the government should ensure political and macroeconomic stability.
