Thecuy.com – The number of retail stock investors in Indonesia has now reached approximately 35 million people, up about 30 percent from the previous year. This significant growth makes stock market movements increasingly influential on the national economic condition.
David Sumual, Chief Economist at PT Bank Central Asia Tbk (BCA), said that the role of retail investors today is very different from the 2000s era, when the number of capital market investors was still limited to fewer than 500,000 people. At that time, the impact of stock market fluctuations on the overall economy was not so noticeable.
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According to David, one way the stock market influences the economy is through changes in people’s perception of wealth. When the stock market rises, investors who earn profits feel wealthier and tend to increase their consumption of goods and services.
He cited the previous year’s stock market rally as a case that spurred higher consumer spending. Additionally, investors realizing profits or taking profit also channel funds back into consumption activities, reinforcing the positive economic impact.
However, when the market faces pressure, cut‑loss actions by investors who have not yet realized gains can have a different impact on transaction dynamics in the capital market.
David also presented BCA’s consumption indicators, which indicate a recovery in consumer spending since June 2026, with growth of around 9 percent. The upper middle class is one segment that is relatively resilient in maintaining consumption.
A 27 percent increase in passenger car sales in June also serves as a positive signal of economic recovery after lower growth in the previous month.
With a growing and diversifying pool of stock investors, stock market movements have become one of the key factors influencing Indonesia’s broader economic dynamics.
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