Indonesia’s Capital Market Reaches a New Milestone
The number of investors in Indonesia’s capital market has experienced a phenomenal surge, reaching a new milestone of 17 million by the end of June 2025. This represents an impressive growth of 40% in just 18 months, climbing from 12.17 million at the end of 2023. The significant increase firmly establishes Indonesia as the leader in Southeast Asia in terms of capital market investor numbers, surpassing neighboring countries like Thailand, which has approximately 6 million retail investor accounts, Malaysia with over 5 million, and the Philippines with 2.86 million accounts in 2024. This growth is predominantly fueled by domestic retail investors, who now constitute a vast majority of the total investor base, demonstrating a powerful trend of increasing financial inclusion and public confidence in the capital market as a viable avenue for investment.
Retail Investors Drive Market Activity and Ownership
The expanding investor base is not merely a reflection of new accounts being opened but also of heightened market participation and influence. The Indonesia Stock Exchange (IDX) reports a daily average of 179,000 active traders, a testament to the increased financial literacy and engagement with various investment products. This heightened activity is directly translating into a larger share of market ownership for retail investors. The data shows a promising upward trend, with domestic investors now holding approximately 18.2% of the total securities ownership on the IDX, a significant jump from a mere 10.6% before the Covid-19 pandemic. Furthermore, retail investors are now the largest contributors to daily trading activities, accounting for an impressive 44% of the total transaction value on the IDX in the first half of 2025.
The Role of Education in Fostering Growth
This remarkable growth is attributed to a strategic, concerted effort by the Indonesia Stock Exchange to cultivate a more inclusive and sustainable capital market ecosystem. Irvan Susandy, Director of Trading and Membership Regulation at the IDX, highlighted the intensification of educational initiatives designed to enhance public understanding and participation in capital market investments. These comprehensive programs, which include both offline and online campaigns, are conducted in collaboration with a broad range of stakeholders, from representative offices across Indonesia to investment galleries and social media ambassadors. By extending these educational efforts beyond major cities and into diverse regional communities, the IDX is successfully promoting equitable financial literacy and nurturing a more sophisticated, competitive, and long-term oriented retail investor base for the future.
