DECISION MAKING ANALYSIS ON INCREASING THE LEVEL OF CAPITAL MARKET LITERACY IN INDONESIA USING ANALYTICAL HIERARCHY PROCESS

• Main Author: Astari Anggraeni, Niken
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75957
• Institution: Institut Teknologi Bandung

From the latest National Survey of Financial Literacy and Inclusion/Survei Nasional Literasi dan Inklusi Keuangan (SNLIK) conducted by Financial Service Authority (Otoritas Jasa Keuangan/OJK), capital market placed as the industry that has the lowest level of literacy among other financial industries in Indonesia. Indonesia Stock Exchange (IDX), as the only stock exchange in Indonesia, must face the competition to catch up with other financial services industries in the term of increasing the industry’s level of literacy. To increase the level of capital market literacy, IDX regularly conduct educational activities. Educational activities are considered as projects within Market Development Division. Currently, IDX’ Market Development Division is considering two major project options on educational activities which will be the alternatives in this Final Project. From the two major project options, it is important to determine which one that will give the maximum impact on increasing the level of capital market literacy by using Analytical Hierarchy Process (AHP) since AHP is commonly used for selecting project prioritization. Data in this Final Project were collected by qualitative and quantitative methods. The decision makers were asked to determine the alternatives, criteria, and sub-criteria then assessed the scale of importance of the alternatives, criteria, and sub-criteria using pairwise comparison. There are three (3) criteria which are Exposure, Output, and Impact with eight (8) sub-criteria which are Frequency, Geographic, Media, Partnership, Participant, Awareness, New Investor, and Cultural Change. There are two (2) alternatives which are Rebranding “Yuk Nabung Saham” Campaign and Selection of Capital Market Ambassadors/Duta Pasar Modal. From the result of AHP, it can be concluded that Participant is the sub-criteria that has highest weight and the best alternative for IDX is Rebranding “Yuk Nabung Saham” Campaign as educational activity that give the maximum impact to increase the level of capital market literacy in Indonesia.