JAKARTA. President Prabowo Subianto stated that Indonesian stock market is quite unfriendly to retail investors, as they will be easily outmatched by large-scale players.

“For small investors, they will inevitably lose [in stock investments]; for the little guy, it’s like gambling. The winners are always the big players, the strong ones, right?” Prabowo remarked during his speech at Muhammadiyah’s 112th anniversary event on Wednesday (December 4).

Prabowo stated the notion while discussing Makan Bergizi Gratis (Free Nutritious Meals) program, his ultimate program announced throughout his presidential campaign. He even suggested that there are parties ready to weaken the Jakarta Composite Index (JCI) if the program is launched.

It is worth mentioning that Makan Bergizi Gratis (Free Nutritious Meals) program designed by him is gaining special tractions from investors.

Morgan Stanley, investment banking company from the United States, even lowered investment rating in Indonesia’s stock exchange at the beginning of the second half of 2024.

In its report, Morgan Stanley warned that the program could lead to a substantial fiscal burden, while also noting a deteriorating outlook for Indonesia’s state income.

Jeffrey Hendrik, Director of Development at the Indonesia Stock Exchange (IDX), expressed agreement with Prabowo’s broader message. He emphasized that the IDX consistently advises investors to be cautious in their stock market investments.

“We always remind investors to make rational decisions, paying close attention to the fundamental performance of the companies,” Jeffrey stated. (KR/ZH)