Financial Market Deepening is the most important aspect in redressing real interest rates, so it will decrease banking interest rates. This was stated by Acting Head (Plt.) of Fiscal Policy Office (BKF) Bambang P.S. Brodjonegoro in Jakarta recently.
“We should create a non-banking instrument, other than deposits and saving (the conservative one), whose number of investors is larger than the investors in stock market,” he explained. This was conveyed considering investors’ basis that becomes the most important condition in maintaining the stability and deepening financial market. By becoming investors of Government Securities, people will always think about how to maintain their portfolio from losing. Therefore, financial market will keep developing. “And the government has started doing this through Government securities. We issue this in the primary market, but it will be more interesting if the secondary market is also active, so new investment instrument will arise, such as through mutual funds or retail bonds,” he explained.
He expects, both investment instruments will attract public more, and keep increasing and developing. Therefore, this will make passive investors to be more active in diverting their investment to mutual funds. “If they have diverted to mutual funds, the real interest rates will be redressed by itself, it no longer becomes a problem,” he concluded.