<![CDATA[This study aims to analyze the strategic role of the capital market in promoting Indonesia’s economic growth through a descriptive qualitative approach based on literature review. The capital market plays a crucial role in the financial system as a mechanism for mobilizing long-term funds, improving capital allocation efficiency, and supporting the financing of productive and sustainable projects. The findings indicate that the development of the capital market positively contributes to the increase of Gross Domestic Product (GDP) through mechanisms such as capital accumulation, market liquidity, and investment efficiency. However, the contribution of Indonesia’s capital market to economic growth remains constrained by structural challenges, including low financial literacy, dominance of retail investors, and limited market depth. On the other hand, digital transformation and financial innovations such as online trading, green bonds, and global market integration create new opportunities to enhance the strategic role of the capital market in sustainable financing. The study concludes that strengthening regulation, improving transparency, and broadening the investor base are key strategies for positioning Indonesia’s capital market as a major driver of inclusive and sustainable economic growth.]]>
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