The Role Of Education And Financial Literacy In Increasing Investor Participation In The Capital Market

Abstract

Capital markets play a strategic role in a country's economy by providing funds to entities in need and facilitating relationships between investors and companies. The success of the capital market depends on people's financial literacy, which includes understanding and skills in managing finances and investing. While financial literacy in general has increased, capital market-specific literacy is still low and has shown a decline in recent years. This study aims to assess the impact of financial education and literacy programs on investor participation in the capital market, as well as differences in community responses before and after receiving capital market literacy. A descriptive qualitative research method was used to analyze data from a financial literacy survey conducted by OJK. The results show that increasing financial literacy and Education can improve people's understanding of the capital market, which in turn can increase investor participation and support the sustainable growth of the capital market.