Promoting Stock Investment, Irwan Hidayat Urges Mindset Shift to Strengthen National Economic Sovereignty
Irwan Hidayat, Director of PT Industri Jamu dan Farmasi Sido Muncul Tbk, has campaigned for the importance of Indonesian society transitioning to stock market investment as a concrete step to develop personal finances whilst strengthening the foundation of the national economy.
Irwan believes that the current opportunities for investment in the capital market have not been maximised by the broader public, as reflected in the still-low number of domestic investors compared to Indonesia’s total population.
According to data from the Indonesia Central Securities Depository (KSEI), the number of stock investors in the country has reached only approximately 20.3 to 21 million people, or merely about 7.5 per cent of Indonesia’s total 270 million population.
This figure lags far behind developed nations such as the United States, where 2024 Gallup data shows that 62 per cent of the adult population holds stock instruments.
Irwan emphasised that this small participation represents an obstacle to the strength of the domestic capital market.
“This number is still very small. Yet if we want our market to be strong, the number of investors must be large. In Indonesia there are only about 20 million people, that is just 7.5 per cent. In America it is already 62 per cent. However, collecting shares of well-managed companies is far more profitable than keeping money ‘under the pillow’ or in the bank,” said Irwan Hidayat on Friday, 13 March 2026.
According to Irwan’s observation, low financial literacy has caused many people to remain trapped in conventional thinking patterns by keeping money in banks or even storing it in cash at home.
He has even encountered cases of people storing tens of millions of rupiah in cupboards merely out of concern about bank administration fees—a habit he considers highly unproductive because the value of money does not grow and actually loses opportunities for profit.
Irwan explained that average bank interest rates only range between 2 to 3 per cent per year, whilst stock investment has the potential for far higher growth if done correctly.
“With stocks, you can get 40 per cent. A minimum of 15 to 20 per cent can be achieved per year, provided you choose healthy and honest companies. If you invest in good stocks, within two years you could profit 30 to 40 per cent,” he explained.
However, Irwan offered critical observations and stern warnings so that people could distinguish between serious investment and speculation, often referred to as “playing the stock market”.
He reminded people not to view the capital market merely as a venue for speculation, as fear of losses often arises from bad experiences resulting from incorrect methods.
He suggested prospective investors to study basic indicators such as Price Earning Ratio (PER) so that decisions made are more rational and measured.
“If you have 10 million rupiah, 20 million, even up to 100 million, invest. But do not play the stock market. Investment is serious, not a game. If you play, that is incorrect. Choose companies that are well-managed, honest, healthy, and have a proven reputation over the long term,” Irwan stressed.
Furthermore, the Sido Muncul chief believes that increasing the local investor base is key to economic sovereignty so that Indonesia’s capital market does not remain dependent on foreign capital flows that have vast resources.
He holds a grand vision for local participation to surge to 40 per cent or equivalent to 100 million investors, so that the national stock market becomes more resilient to global shocks as in the United States.
“Currently our market is still heavily controlled by foreigners because local participants are few. Imagine if participation increased by another 50 million people, the face of our stock market would be completely different. We would no longer depend on foreigners. So simply choose good stocks and invest in them so our market becomes strong,” concluded Irwan.