[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-109429-en":3,"doc-seo-109429-105":31,"detail-sidebar-cat-0-en-105":92},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":28,"seo_description":14,"update_tm":29,"read_time":30},109429,4398048950312,"Violet","https://ap-avatar.wpscdn.com/avatar/400002538284de19e3c?_k=1778320343897328908",8,"Research & Report","Indonesia Financial Sector Assessment Program - Technical Note - Long Term Finance and Capital Markets Development","The technical note assesses the development of long-term finance and capital markets in Indonesia under the IMF-World Bank Financial Sector Assessment Program (FSAP). It highlights progress supported by the Financial Sector Omnibus Law (Law 4/2023) and continuing regulatory amendments, while identifying remaining structural issues and reform needs. The analysis covers capital market institutions and products, government securities, money markets, derivatives, corporate bonds, sukuk liquidity constraints, and equity market depth, emphasizing reforms to improve primary/secondary market efficiency and broaden institutional investors.","April 2024  \nPublic Disc losure Authorized  \nPub lic Disc losure Authorized  \nTHE WORLD BANK GROUP  \nINDONESIA  \nFINANCIAL SECTOR ASSESSMENT PROGRAM  \nTECHNICAL NOTE  \nLONG TERM FINANCE AND CAPITAL MARKETS DEVELOPMENT  \nPrepared By  \nFinance, Competitiveness, and Innovation Global Practice, WBG  \nThis Technical Note was prepared by Fiona Stewart (Lead Financial Sector Specialist) in the context of a joint IMF-World Bank Financial Sector Assessment Program (FSAP) mission in Indonesia during October 2-18, 2023 led by Ranjit Singh, IMF and Ilias Skamnelos, World Bank, and overseen by the Monetary and Capital Markets Department. IMF, and the Finance, Competitiveness, and Innovation Global Practice, World Bank Group. The note contains the technical analysis and detailed information underpinning the FSAP assessment’s findings and recommendations. Further information on the FSAP program can be found [at ](at www.worldbank.org/fsap)[www.worldbank.org/fsap](at www.worldbank.org/fsap).  \nCONTENTS  \nGLOSSARY .................................................................................................................................................................................. 3  \nExecutive Summary ................................................................................................................................................................. 4  \nTable of Recommendations................................................................................................................................................. 7  \nI. BACKGROUND ..................................................................................................................................................................... 9  \nRECOMMENDATIONS................................................................................................................................................................36  \n GLOSSARY  \nAUM  \nBI  \nBPJS  \nCCP  \nCP  \nDB  \nDJSN  \nDC  \nDPLK  \nDPPK  \nETF  \nESG  \nFSOL  \nGDP  \nICMA  \nIDX  \nIPO  \nJHT  \nJP  \nLPS  \nMFI  \nMoF  \nMM  \nMTDS  \nNCD  \nNBFI  \nOJK  \nOMO  \nOTC  \nPD  \nPE  \nPPP  \nRBS  \nREIT  \nRTGS  \nSME  \nSMF  \nSPPA  \nSSSS  \nAssets Under Management Bank Indonesia  \nBadan Penyelenggara Jaminan Sosial Central Clearing Counterparty Commercial Paper  \nDefined Benefit  \nDewan Jaminan Sosial Nasional Defined Contribution  \nDana Pensiun Lembaga Keuangan  \nDana Pensiun Pencari Kerja Exchange Traded Fund Environmental, Social, and Governance  \nFinancial Sector Omnibus Law Gross Domestic Product  \nInternational Capital Markets Association  \nIndonesia Stock Exchange Initial Public Offering Jaminan Hari Tua  \nJaminan Pensium  \nLembaga Penjamin Simpanan Microfinance Institution Ministry of Finance  \nMarket Maker  \nMedium-Term Debt Management Strategy Negotiable Certificates of Deposit  \nNon-bank Financial Institutions  \nOtoritas Jasa Keuangan Open Market Operation Over the Counter Primary Dealer  \nPrivate Equity  \nPublic Private Partnership Risk-Based Supervision Real Estate Investment Trust Real Time Gross Settlement Small and Medium Enterprise Sarana Multigriya Finansial  \nSistem Penyelenggara Pasar Alternatif Scripless Securities Settlement System  \n EXECUTIVE SUMMARY  \n1. Progress has been made in developing the capital markets in Indonesia, supported by the passage of the Financial Sector Omnibus Law (FSOL, Law 4/2023) and on-going regulatory amendments which can be expected to yield result over time, but further reforms are required and structural issues still need addressing. The FSOL strengthens the regulatory powers of the Otoritas Jasa Keuangan (OJK) and lays the foundation for collective investment products, derivative markets, insurance market reform, and pension sector development. Despite progress, local capital markets remain shallow and do not provide an adequate and competitive source of alternative funding from the bank sector, which still dominates. Well-drafted supporting regulations for the FSOLare an important ne","cbCaivHy0U0J1yp8","https://ap.wps.com/l/cbCaivHy0U0J1yp8","pdf",1684412,4,1,44,"English","en",105,"# Executive Summary\n## Capital Markets Progress and Regulatory Reform\n## Government Securities and Money/Derivatives Markets\n## Corporate Bonds, Sukuk, and Equity Market Development","[{\"question\":\"What role does the Financial Sector Omnibus Law (FSOL) play in capital markets development in Indonesia?\",\"answer\":\"The FSOL strengthens the regulatory powers of the Otoritas Jasa Keuangan (OJK) and provides a foundation for collective investment products, derivative market development, insurance reform, and pension sector growth.\"},{\"question\":\"Which money-market and derivatives areas require additional reform?\",\"answer\":\"The repo market needs clearer legal and tax frameworks, the commercial paper market faces similar constraints, and the derivatives market requires broader interest rate derivatives listings and further reforms.\"},{\"question\":\"What are the main bottlenecks in corporate bond and sukuk market development?\",\"answer\":\"Corporate bonds remain small due to low secondary-market liquidity and hampered price discovery, driven largely by limited long-term investors and the ease of bank credit availability. The sukuk market faces even more significant liquidity constraints.\"}]","Indonesia Financial Sector Assessment Program - Technical Note - Long Term Finance and Capital Markets Development | PDF",1784479657,111,{"code":4,"msg":32,"data":33},"ok",{"site_id":25,"language":24,"slug":34,"title":13,"keywords":35,"description":14,"schema_data":36,"social_meta":87,"head_meta":89,"extra_data":91,"updated_unix":29},"indonesia-financial-sector-assessment-program-technical-note-long-term-finance-and-capital-markets-development","",{"@graph":37,"@context":86},[38,54,69],{"@type":39,"itemListElement":40},"BreadcrumbList",[41,45,49,52],{"item":42,"name":43,"@type":44,"position":21},"https://docshare.wps.com","Home","ListItem",{"item":46,"name":47,"@type":44,"position":48},"https://docshare.wps.com/document/","Document",2,{"item":50,"name":12,"@type":44,"position":51},"https://docshare.wps.com/document/research-report/",3,{"item":53,"name":13,"@type":44,"position":20},"https://docshare.wps.com/document/indonesia-financial-sector-assessment-program-technical-note-long-term-finance-and-capital-markets-development/109429/",{"url":53,"name":13,"@type":55,"author":56,"headline":13,"publisher":58,"fileFormat":61,"inLanguage":24,"description":14,"dateModified":62,"datePublished":63,"encodingFormat":61,"isAccessibleForFree":64,"interactionStatistic":65},"DigitalDocument",{"name":9,"@type":57},"Person",{"url":42,"name":59,"@type":60},"DocShare","Organization","application/pdf","2026-07-30","2026-07-19",true,{"@type":66,"interactionType":67,"userInteractionCount":20},"InteractionCounter",{"@type":68},"ViewAction",{"@type":70,"mainEntity":71},"FAQPage",[72,78,82],{"name":73,"@type":74,"acceptedAnswer":75},"What role does the Financial Sector Omnibus Law (FSOL) play in capital markets development in Indonesia?","Question",{"text":76,"@type":77},"The FSOL strengthens the regulatory powers of the Otoritas Jasa Keuangan (OJK) and provides a foundation for collective investment products, derivative market development, insurance reform, and pension sector growth.","Answer",{"name":79,"@type":74,"acceptedAnswer":80},"Which money-market and derivatives areas require additional reform?",{"text":81,"@type":77},"The repo market needs clearer legal and tax frameworks, the commercial paper market faces similar constraints, and the derivatives market requires broader interest rate derivatives listings and further reforms.",{"name":83,"@type":74,"acceptedAnswer":84},"What are the main bottlenecks in corporate bond and sukuk market development?",{"text":85,"@type":77},"Corporate bonds remain small due to low secondary-market liquidity and hampered price discovery, driven largely by limited long-term investors and the ease of bank credit availability. The sukuk market faces even more significant liquidity constraints.","https://schema.org",{"og:url":53,"og:type":88,"og:title":13,"og:site_name":59,"og:description":14},"article",{"robots":90,"canonical":53},"index,follow",{"doc_id":7,"site_id":25},{"code":4,"msg":5,"data":93},[94,98,102,106,111,116,121,124,129,132,136],{"id":21,"doc_module":4,"doc_module_name":47,"category_name":95,"show_sort_weight":96,"slug":97},"Story & Novel",90,"story-novel",{"id":48,"doc_module":4,"doc_module_name":47,"category_name":99,"show_sort_weight":100,"slug":101},"Literature",80,"literature",{"id":20,"doc_module":4,"doc_module_name":47,"category_name":103,"show_sort_weight":104,"slug":105},"Exam",70,"exam",{"id":107,"doc_module":4,"doc_module_name":47,"category_name":108,"show_sort_weight":109,"slug":110},5,"Comic",60,"comic",{"id":112,"doc_module":4,"doc_module_name":47,"category_name":113,"show_sort_weight":114,"slug":115},6,"Technology",50,"technology",{"id":117,"doc_module":4,"doc_module_name":47,"category_name":118,"show_sort_weight":119,"slug":120},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":47,"category_name":12,"show_sort_weight":122,"slug":123},30,"research-report",{"id":125,"doc_module":4,"doc_module_name":47,"category_name":126,"show_sort_weight":127,"slug":128},9,"Religion & Spirituality",20,"religion-spirituality",{"id":127,"doc_module":4,"doc_module_name":47,"category_name":130,"show_sort_weight":127,"slug":131},"World Cup","world-cup",{"id":133,"doc_module":4,"doc_module_name":47,"category_name":134,"show_sort_weight":133,"slug":135},10,"Lifestyle","lifestyle",{"id":137,"doc_module":4,"doc_module_name":47,"category_name":138,"show_sort_weight":107,"slug":139},19,"General","general"]