As we know, the financial market has been growing rapidly and has become one of parameters of a country's level of success. This fast growth can also be seen in Indonesia as it establishes itself as a player in the global financial world. Indonesia has Indonesia Stock Exchange as a form of exchange which provides services for stock brokers and traders to trade stocks, bonds, and other securities. It also provides facilities for the issuance and redemption of securities and other financial instruments, and capital events including the payment of income and dividends. Securities traded on a stock exchange include shares issued by companies, unit trusts, derivatives, pooled investment products and bonds.

Historically, the Indonesia Stock Exchange opened in 1912 under the Dutch colonial government. It was reopened in 1977 after several closures during World War I and World War II. After being reopened in 1977, the exchange was under the management of the newly created Capital Market Supervisory Agency (Badan Pengawas Pasar Modal, or Bapepam), which answered to the Ministry of Finance. Trading activity and market capitalization grew alongside the development of Indonesia's financial markets and private sector - highlighted by a major bull run in 1990. On July 13, 1992, the exchange was privatized under the ownership of Jakarta Exchange Inc. As a result, the functions of Bapepam changed to become the Capital Market Supervisory Agency. On March 22, 1995 JSX launched the Jakarta Automated Trading System (JATS). In September 2007, Jakarta Stock Exchange and Surabaya Stock Exchange merged and named Indonesian Stock Exchange by Indonesian Minister of Finance. As end of 2012, the Indonesia Stock Exchange had 462 listed companies with a combined market capitalization of $426.78 billion. Up to now, the index's all-time high level was at 5,214.98 points on May 20, 2013.