Abstract
Indonesian capital market may be illustrated as a teenager who are growing rapidly, where his or her anatomical posture begin to swell and develop steadily. Indonesian Capital Market, known as the Indonesia Stock Exchange (IDX or BEI) is a merger of the Jakarta Stock Exchange and Surabaya Stock Exchange. BEI has been associated with two terminology, both as an engine and an icon of the Indonesian economy hitherto. However, development of the Indonesia Stock Exchange is significantly influenced by two sectors, both SOE’s and Larger Private Sector (Conglomerate). The latter sector has shaped Indonesian Bourse around 40% of total capitalization intensively. Unlike state-owned companies, where a business entity represented only one company in the market, Large Private Group entered the Indonesian capital market through several strategies. At least, there are seven Conglomerates will be discussed in this study. Astra Group, Bakrie, Salim, Lippo, Sinarmas and MNC are the best illustrative to figure out the conglomerates in Indonesia and their role to the capital market and national economy. The paper aims to investigate inter-relationship between the very large sector (Conglomerates) and State-Owned Enterprises with regard to economic policies as well as corporate actions and corporate governance undertaken by such institutions. Both sector have advantageous and disadvantageous that transforming into several model and finally providing the government to perform several policies to energize economic development.
Published Version
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