Anxiety Amid Rising Prices
A Jakarta office worker, Andi (not his real name), sighed while comparing his monthly shopping receipt with three months ago. Cooking oil increased by 12%, rice by 9%, eggs by 17% - while his salary remained the same. He is not alone. Data from the Central Statistics Agency shows an annual inflation rate of 3.13% in 2023, but the pressure of rising prices of basic needs feels much higher at the household level.
In such a situation, the capital market is often referred to as a protector of money value. However, for beginners like Andi, terms like *single investor identification*, *index fund*, or *retail bonds* still feel abstract - even intimidating. Yet, the first step is not about choosing stocks, but understanding the basics: money that stays idle will lose its value; money that moves in the right direction can offset inflation.
Surge in New Investors, Literacy Lags Behind
According to data from the Indonesia Central Securities Depository (KSEI) as of December 2023, the number of capital market investors in Indonesia reached 11.57 million SID - up 42% compared to the end of 2022. This growth is driven by the ease of opening accounts via applications, aggressive promotions from digital platforms, and OJK's educational campaigns. However, the 2023 OJK survey shows only 21.3% of the Indonesian population has a high level of financial literacy - and this number is even lower for capital market literacy.
As a result, many new investors fall into speculative patterns: buying stocks just because they are viral on social media, ignoring the prospectus of funds, or falling for illegal investment schemes that promise unrealistic returns. Education is vigorous - from Investment Galleries in 127 campuses to weekly OJK webinars - but the challenges remain structural: the culture of saving is still dominant, while the culture of long-term investment has not become part of daily financial planning.
Practical Steps, Not Theories
Starting does not have to be big. Just three concrete steps:
Financial experts emphasize: avoid individual stocks at the beginning. Focus on discipline - for example, setting aside Rp200,000 every month through the *auto-debit* feature - is far more impactful than seeking instant profits.
Broader Impact of Individual Decisions
When more citizens invest consciously, the capital market becomes not only a personal value protection tool. Funds entering through mutual funds or retail bonds directly flow to corporations and the government - funding factory construction, infrastructure, or social programs. On the other hand, stable market liquidity reduces the cost of capital for companies, driving expansion and job creation.
However, these benefits are only realized if participation is based on understanding. Without literacy, the flow of funds can become unsustainable - investors easily exit when volatility rises, or switch to high-risk instruments without analysis. Collaboration between OJK, KSEI, Bursa Efek Indonesia, and educational institutions remains crucial to provide factual, conflict-free, and accessible educational materials - including audio and printed versions for areas with limited internet access.
Investment Is Not a One-Time Event, But a Daily Habit
Andi now sets aside 8% of his salary each month into a money market fund. He does not calculate daily profits, but monitors his portfolio development every three months. He also reads brief financial reports of the companies included in the index fund he chose - not to predict prices, but to understand how the companies make money.
This change did not happen overnight. But each small step - reading one OJK infographic, watching one official educational video, or asking questions in an official forum - builds a solid foundation. For Indonesia aiming for inclusive growth towards Indonesia Emas 2045, capital market literacy is no longer an extra. It is a fundamental financial skill equivalent to reading and writing - because in the era of inflation, lack of understanding of the capital market is not only a financial risk, but also erodes personal economic independence.