The Indonesia Stock Exchange in Central Jakarta on Monday. (Antara Photo/Dhemas Reviyanto)

IDX Registers 860,000 New Investors in 2019


DECEMBER 30, 2019

Jakarta. The number of domestic investors in the Indonesian capital market increased by a half to close to 2.5 million this year, reflecting growing interests among locals to invest in financial instruments like stocks, mutual funds and bonds. 

The Indonesia Stock Exchange (IDX) said the number of single investor identification (SID), the integrated registry number for financial investors in the country, has risen from 1.62 million at the end of last year to 2.48 million at the end of this year. 

"The total includes investors in stocks, mutual funds and debt securities," IDX president director Inarno Djajadi said in a statement on Monday. 

The bourse has spearheaded efforts to get more Indonesians to invest in financial instruments to cut reliance on foreign portfolio investment inflow.

Foreign funds rarely stay in the country for a long time and their entries or exits often complicate Indonesia's fiscal and monetary authorities' efforts to stabilize the local financial market during times of crisis.

The IDX's efforts seem to have borne fruit this year. Inarno said the number of stock investors alone has risen to 1.1 million this year, a 30 percent increase from last year. 

Trading activity at the IDX in 2019 also increased. Trading frequency grew 21 percent to 469,000 times per day, higher than in any other stock exchange in Southeast Asia. 

The average daily transaction value rose 7 percent to Rp 9.1 trillion ($655 million) this year from Rp 8.5 trillion in 2018. 

The stock market also made notable progress this year in promoting practices compliant to Islamic rules.  

The Global Islamic Finance Award (GIFA) named IDX the best Islamic capital market in 2019 thanks to the increase in activity and participation of Islamic-compliant investors in Indonesia. 

Today, there are 429 stocks traded at the IDX that are considered compliant with sharia requirements, i.e. not involved in usury or trade of alcohol or pork. These sharia stocks are valued at Rp 3,767 trillion in total, accounting for half of the market capitalization of all shares traded in the bourse. 

More than 66,200 investors were involved in sharia investments by the end of November, Inarno said.  

Trade Minister Agus Suparmanto, representing President Joko Widodo, opened the last day of trading in 2019 at the IDX on Monday. 

Finance Minister Sri Mulyani Indrawati and Bank Indonesia Governor Perry Warjiyo also attended the event.