Challenges and Opportunities of Capital Market Efficiency in the Digital Era (Maliki Interdisciplinary Journal)

Summary

• As of August 2025, Indonesia recorded approximately 17.6 million Single Investor Identification (SID) accounts in its capital market.p.1
• Young investors under 30 years old represent 54.25% of the total retail investor base in Indonesia.p.1
• Indonesia's digital economy value is projected to reach USD360 billion by the year 2030.p.2
• The national financial literacy rate reached 49.68% according to the 2022 OJK survey.p.4
• Equity crowdfunding in Indonesia is governed under the POJK 57/2020 regulatory framework.p.4
• OJK mandated XBRL for financial reporting in 2015 via Regulation No. 29/POJK.04/2016 to improve market transparency.p.5

Key insights

1. Digitalization accelerates transaction settlement and reduces operational costs while improving price discovery speed.p.1
2. A high concentration of young retail investors introduces market volatility driven by emotional behaviors such as FOMO and herding.p.2
3. Adoption of artificial intelligence, big data, and blockchain provides strategic capabilities for risk management and valuation accuracy.p.3
4. Cyberattacks on financial platforms result in immediate negative market reactions and short-term stock price declines.p.4
5. Robo-advisors and fractional investing expand access for entry-level retail investors with limited initial capital.p.4
6. Algorithmic and high-frequency trading create potential risks of flash crashes and system failures requiring adaptive oversight.p.5
7. Implementation of XBRL reporting reduces information asymmetry between public issuers and market participants.p.5