The Strategic Role of Capital Markets: Impact and Function on the Indonesian and Israeli Economies

Richart Sahatatua, I Ketut Astawa, Dessy Asihany Pakpahan, Ade Maman Suherman, Try Setiady, Wahyu Donri Tinambunan, Imam Budi Santoso, Aslan Noor, Edison Jaya Pakpahan, Eka Florida Elyzabeth, Teuku Syahrul Ansari

Abstract


The capital market plays an important role in a country's economy because it functions as a means of efficient fund allocation. This study discusses the impact and function of the capital market on the economies of Indonesia and Israel, two countries with different economic characteristics. In the context of Indonesia, the capital market plays a role as an instrument to encourage economic growth through the mobilization of funds from local and international investors and as a source of funding for companies. On the other hand, the Israeli capital market is known as one of the most advanced in the Middle East, with technological innovation and startup companies utilizing the capital market to accelerate growth. This study analyzes the comparative role and function of the capital market in the two countries, as well as their impact on economic stability, investment growth, and private sector development. The results of the analysis show that despite differences in infrastructure and regulation, the capital markets in both countries make significant contributions to their national economies, with unique characteristics and dynamics in each country.

Keywords


Capital Market; Economy, Indonesia, Israel, Investment; Economic Growth

Full Text:

PDF

References


Aulia, KS, Sitorus, M., & Batubara, M. (2022). The Role of Capital Markets in the Indonesian Economy. JIKEM: Journal of Computer Science, Economics and Management, 2(2), 2523–2529.

Fathoni, H. (2021). The Role of Islamic Capital Markets in Economic Growth Rate in Indonesia. Khazanah Multidisiplin, 2(1), 33 44.

Fauzan, M. (2018). Actualization of Yusuf al-Qaradawi's thoughts on zakat shares in Indonesia. IAIN Palangka Raya. HARTATI, AW (2022). THE ROLE OF THE SHARIA CAPITAL MARKET DEVELOPMENT HOUSE AS A MEANS OF CAPITAL MARKET EDUCATION IN THE COMMUNITY OF ULUDANAU DUSUN, PADANG BETUAH VILLAGE, KEC. PONDOK COCONUT DISTRICT. CENTRAL BENGKULU. UIN Fatmawati Sukarno Bengkulu.

Kemu, S. Z. (2017). Indonesian people's capital market literacy. Review, 21(2), 161–175.

M. Irsan Nasarudin, SH (2014). Legal Aspects of the Indonesian Capital Market. Kencana. https://books.google.co.id/books?id=s8O9DwAAQBAJ

Martin, S., & Aryani, DDP (2021). THE ROLE OF CAPITAL MARKETS IN ECONOMIC DEVELOPMENT IN INDONESIA. Research in Accounting Journal (RAJ), 1(3), 500–507.

Muklis, F. (2016). Development and challenges of the Indonesian capital market. Al-Masraf: Journal of Financial and Banking Institutions, 1(1), 65–76.

Nasution, MKM (2017). Literature review. Scientific Writing Techniques, 3, 1–7.

Permata, CP, & Ghoni, MA (2019). The Role of Capital Markets in the Indonesian Economy. Jurnal AkunStie (JAS), 5(2), 50–61.

Rachmadini, VN (2020). Legal Protection for Investors in the Capital Market According to the Capital Market Law and the Financial Services Authority Law. Pena Justisia: Media Communication and Legal Studies, 18(2). Suhardini, ED (2015). The Role and Function of the Capital Market in the Development of the Indonesian Economy. Wacana Paramarta: Journal of Legal Studies, 14(1).

Toha, M., & Manaku, AAC (2020). Development and Problems of Islamic Capital Markets in Indonesia. Al-Tsaman: Journal of Islamic Economics and Finance, 2(1), 135–144.

Fitria Puteri Sholikah, The Role of Capital Markets in the Indonesian Economy.

Indonesia Capital Market Performance: Last 5 Years Analysis for Investors (idxchannel.com)

https://internasional.republika.co.id/berita/149291/mengintip-skenario-israel-menguasai-pasar-asia

Israel - GDP Growth (q-to-q) | 1980-2024 Data | 2025-2026 Forecast (tradingeconomics.com)

The Role of Capital Markets and Their Functions for the State Economy (lifepal.co.id) https://www.kompasiana.com/sirilus30/656478e5c57afb42b26f3c82/pasar-modal-peran-dan-impaknya-terhadap-per Ekonomian-negara




DOI: https://doi.org/10.61813/jhap.v2i2.140

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Jurnal Hukum dan Adminstrasi Publik

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.