Peran Pasar Modal dalam Pertumbuhan Ekonomi di Indonesia
DOI:
https://doi.org/10.61722/jaem.v3i3.11139Keywords:
Capital Market, Economic Growth, Pasar Modal, Pertumbuhan EkonomiAbstract
The development Indonesian capital market was established in 1912, when it only provided securities for the sale of bonds from companies owned by the Dutch East Indies. Then, during the Indonesian government, the capital market was reopened in 1950 after the issuance of Emergency Law No. 13 of the Stock Exchange in 1951, which was then enacted as Law No. 13 of 1952. As a country with the power of No. 16 in the G-20 membership, the existence of the capital market is a pillar for economic growth Indonesia. This study seeks to examine the role of the Capital Market in improving the economy in Indonesia. The researcher used a Qualitative Descriptive research method with a literature review. The results of the study show that the Capital Market is an alternative source of financing for investors. The law plays a major role in creating an orderly, fair, and efficient capital market. There are two main instruments traded in the capital market, namely stocks and bonds. The capital market has an important role for economy in Indonesia. First, as a source of business financing or as a way for companies to obtain funds from investors. Second, the capital market is also serves as a gauge of a nation’s economic development.
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