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Local investors have been urged to play a larger role in the nation’s equity market in a bid to bolster its resilience in the face of global economic turbulence.

“Investors, safeguard your own market so that it is not taken over by international competitors who want to come to Indonesia,”

Finance Minister Agus Martowardojo said on Wednesday in a speech at an investor summit organized by the Indonesia Stock Exchange (IDX).

Agus’s comments came amid concerns that the global financial uncertainty triggered by a debt crisis in the euro zone and a slowing US economy may hit Indonesia, especially when the market is dominated by foreign investors.

Agus, who was installed as finance minister in May 2010, also called on local investors to assert their power in the domestic capital market.

“It would not be good if the economy is taken over by competitors. Performance will go down, and so will the surplus,” the minister said.

“Prepare yourself so that you can expand your market and not let it be taken over by others.”

Separately, Nurhaida, chairwoman of the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK), said the fundamentals of Indonesia’s economy remained strong, providing a shield from external financial shocks.

“If you compare us to overseas economies, our listed companies remain good, our fundamentals remain solid and our economy is still growing,’’ Nurhaida said.

Indonesia’s $700 billion economy, which expanded 6.1 percent last year, is forecast to expand by 6.5 percent this year and 6.7 percent next year, according to government estimates.

Nurhaida said the combined market capitalization of 435 companies listed on the IDX has since early August fallen 20 percent to Rp 2,963 trillion ($331.9 billion).

Indonesian stocks, which rose 46 percent last year, have fallen 11 percent this year.

Citing data from the Indonesia Central Securities Depository (KSEI), IDX president director Ito Warsito, said there were 350,000 domestic investors trading in the local equity market. If investors in the debt market and mutual funds were taken into account, that number would rise to 1.1 million.

“We are aiming to boost the number of local investors to 2.3 million by 2012. We still have time to reach that,’’ Ito said.

Investors in developed countries have recently sought to tap into the resilience of economic growth in developing world nations such as Indonesia as the growth outlook in their home countries has deteriorated.