President Prabowo's statement recently went viral when he likened the stock market to gambling for ordinary citizens—suggesting that only the wealthy ever truly win. Meanwhile, Finance Minister Sri Mulyani has emphasized the importance of early capital market education, even proposing that stock investing be taught at the elementary school level. So, is investing in stocks a form of gambling, or a smart financial move? Let’s analyze this together.

A Look Back: First Experience in Stock Investment

Indonesia's capital market is now far more developed than it was two decades ago. With advanced technology, faster transaction systems, lower entry thresholds, better financial literacy, and the availability of sharia-compliant investment options, stock investing has become more inclusive. But what was it like in the 1990s?

The author first bought stocks in 1995 as a university student, participating in Telkom’s (TLKM) IPO as a long-term investment. At the time, the stock market felt like a highly exclusive realm. Everything had to be done manually—opening a brokerage account required millions of rupiah in initial capital. Transactions took place over the phone with a broker, and shares were held in fragile paper certificates prone to damage or loss.

Market literacy was extremely low, and the public commonly associated stocks with gambling or usury, causing many—including the author—to hesitate. Even though holding the shares for one or two years resulted in significant gains, concerns about Islamic compliance and a lack of education led the author to withdraw from the market.

Capital Market Development: From Technology to Sharia Fatwas

Over time, Indonesia's capital market has seen remarkable evolution. Technological innovation and more inclusive regulations expanded access to retail investors. The idea of a sharia-compliant market began surfacing in 1997, and with the establishment of DSN-MUI in 1999, Islamic economic guidance became more formalized. The first sharia capital market fatwa—Fatwa No. 20/DSN-MUI/IV/2001—was issued on April 18, 2001. It assured that instruments such as stocks, sukuk, and mutual funds could align with Islamic principles—free from usury, uncertainty, and gambling. This gave Muslim investors more confidence, although debates over its implementation remain.

Digital Transformation of the Capital Market

Since the early 2000s, digitalization has revolutionized the capital market in Indonesia. With the Jakarta Automated Trading System (JATS) and the rise of online trading platforms, access has become easier. While initial deposits used to range from Rp5–25 million, many brokerages now allow new accounts with deposits as low as Rp0–1 million. Transactions are faster, cheaper, and more efficient. Brokerage competition has intensified significantly.

By December 2024, KSEI data recorded 14.84 million registered investors. The presence of 927 IDX Investment Galleries—located at campuses and even cafes—supports broader educational outreach.

Playing Stocks vs. Investing: Two Distinct Concepts

Investing in stocks means acquiring ownership in a company. A prudent investor applies fundamental analysis to understand a company’s performance and prospects before investing. In contrast, “playing” the stock market implies speculative behavior—aimed at short-term gains without sufficient analysis.

Speculation occurs when someone buys and sells within minutes, hours, or the same day. For example, someone might purchase the stock of a loss-making or bankrupt company simply because they’re following market manipulators (bandars). That’s not investing—it’s high-stakes speculation.

The goal is to profit from price swings, ignoring poor fundamentals or inflated valuations. Without a proper analytical foundation, such behavior is extremely risky. That’s why strong financial understanding is vital before entering the market.

The Importance of Early Capital Market Education

Why is capital market education crucial? Amidst a rising number of investors, financial literacy helps distinguish wise investing from reckless speculation. Finance Minister Sri Mulyani advocates for stock market education beginning at the elementary school level.

Such education includes learning to choose high-quality companies, spotting investment scams, and understanding risk. Regulators must ensure only companies with strong fundamentals are allowed to go public through rigorous IPO processes. This protects investors and maintains market integrity.

Conclusion: Investing as a Future-Building Tool

Stock investing is about owning part of a real business—not just numbers on a screen. A smart investor understands intrinsic value, uses fundamental analysis, and maintains a long-term vision. With the right knowledge, capital markets can serve as tools for prosperity—not gambling arenas.

Let’s take advantage of technology and progressive regulations to become informed investors. It’s time to redefine the capital market—not as a game of chance, but as a driver of sustainable economic growth. Happy smart investing!