Main Idea and

Supporting
Arranged by : Idea of
Putri Anjjarwati (G72217047) “CAPITAL
Putri Anjjarwati
Putri Anjjarwati
(G72217047)
(G72217047)
MARKET”

Kelompok 1
 Paraghraph 1

Indonesia had experienced economic devastation that had been built through the
joints of the new order policy began crawling back construct the foundation of the
economy. International Financial Corporation (IFC) classification of stocks linked to
the classification of the state. If the country is still classified as a developing
country, the market in the country is also in a developing stage, although market
shares are fully functional and well organized.

Main idea : current economic conditions in indonesia

Supporting idea :
1. The new order policy began crawling back construct the foundation of the economy.
2. The country is still classified as a developing country
3. The market in the country is also in a developing stage
 Paraghraph 2

Developed capital markets can be identified through a country, whether the country is a
developed country or a developing country classified. Indicator is the per capita income
of a country, which is usually included in the low to middle- income countries. But the
most striking characteristic is seen the value of the market capitalization of companies
listed, the cumulative trading volume, the tightness of capital markets regulation,
sophistication and culture to domestik investors.

Main idea : the impact of capital market developments

Supporting idea :
1. the per capita income of a country, which is usually included in the low to middle- income
countries
2. the value of the market capitalization of companies listed
3. the cumulative trading volume
4. the tightness of capital markets regulation
5. sophistication and culture to domestic investors.
 Paraghraph 3

Consequences of growing capital market is a small market capitalization value. A measure of

market capitalization ratio is usually seen from the comparison with the value of a country’s gross
domestic product. In addition to the other consequences is the presence of thin trading volume
(thin trading) caused by trade (non – syncronous trading) on the market. Synchronous trading is
not caused by the number of securities traded not entirely, meaning that there is some specific time
in which a securities transaction does not occur (Hartono, 2003). Indonesia which is still listed on
the IFC is still a developing country with the worst investment climate in the East Asian
region. Even with a record like that, in fact we are still considered by foreign investors. The fact
that there are national companies with actually being in the strategic sectors of the country, offered
by some foreign institutions through the acquisition of shares. The presence of capital inflows as
investments in general is foreign investment should be a booster of the macro economy. The main
reason for foreign investors to move their funds to developing countries is that developing
countries have the potential untapped business entirely, as in the classic motifs of investment to
other countries. Michael Fairbanks and Stace Lindsay senior consultant at Monitor Company
express purpose of foreign investors coming to the poorer countries is usually only see an
opportunity to attract natural resources, cheap labor and wages as the target product or service that
is not good quality.
Main idea : Impact of capital market growth on economic indicators
Supporting idea :
1. Market capitalization value
2. Value of shares traded, and stock price index.
3. Attract foreign investors to invest in the capital market
 Paraghraph 4

But there are other reasons that accompany such motives, the striking differences with
developed countries. If we use a life cycle approach to the business of developing countries
into the category growth (growth) than developed countries that fall into the category of ripe
(mature). It means that there is the attraction of high economic growth which of course is
accompanied by a high return anyway, because economic growth is an aggregate indicator of
industry in a country. For example, the mobile telecommunications business in Indonesia,
which explored the new solid in Java alone, while outside it still has high potential to serve
new markets.