The Role of The Capital Market in the Development of Indonesian Economy

Abstract

 The capital market plays a pivotal role in Indonesia's economic development, serving as a critical financial intermediary for corporate growth, infrastructure funding, and foreign investment inflows. This study examines the opportunities, challenges, and impacts of the Indonesian capital market on national development. Using a qualitative approach, the research synthesizes secondary data from scholarly sources to analyze technological advancements, governance issues, and global economic integration. Findings highlight how technological innovations, such as blockchain and fintech, enhance transparency and inclusivity, while persistent issues, including low financial literacy and weak corporate governance, hinder optimal growth. The study underscores the importance of regulatory adaptation, education initiatives, and sustainability-oriented instruments, such as green bonds, to ensure the capital market resilience and alignment with global trends. These findings provide actionable insights for policymakers and stakeholders aiming to harness the capital market full potential as a driver of economic progress.