THE ROLE OF CAPITAL MARKETS IN THE INDONESIAN ECONOMY IN THE ERA OF INDUSTRIAL 4.0 POST COVID-19 PANDEMIC

Abstract

The Indonesian capital market, as an integral component of the country's financial system, has undergone significant changes due to two main factors: the COVID-19 pandemic and the transition to the Industry 4.0 era. The impact of the pandemic includes high volatility, a decline in asset values, and economic uncertainty, prompting the capital market to accelerate the adoption of technology to maintain operations. On the other hand, the transition to Industry 4.0 highlights the role of financial technology, artificial intelligence, and blockchain. This research aims to detail the impact of structural and technological changes on the Indonesian capital market post-pandemic. The qualitative research method involves stakeholders such as regulators, financial practitioners, and investors. The results show a shift in investor behavior, increased trading volume, and efficiency through AI and blockchain technology. Within the framework of literature, the research applies the Finance for Economic Growth Theory, Innovation and Technology Adoption Theory, Fintech Sector Growth Theory, Risk Management and Economic Resilience Theory, Financial Inclusion and Digital Literacy Theory, and Planned Behavior Theory. These theories help analyze the structural and technological impacts of the capital market in supporting economic growth. Despite regulatory and cybersecurity challenges, future opportunities in the capital market appear through government stimulus policies and global investor participation. Sustainable investment and fintech innovation take center stage, supporting economic growth with a positive impact on the environment. This research contributes to the literature on the transformation of the capital market in the digital era and provides practical insights for stakeholders. Recommendations involve strengthening regulations, cybersecurity, investor education, technology research, and empowering the fintech ecosystem to sustain the growth of the Indonesian capital market amid new dynamics.