In the midst of the corona pandemic, the number of new investors or single investor identification (SID) this year has actually increased. In fact, the addition until last weekend was the highest in the history of the capital market. They also control stock exchange transactions. The impact, also helps market stability. Chief Executive of the Capital Market Supervisory Agency of the Financial Services Authority (OJK) Hoesen said that retail investors were responsible for creating the domestic capital market not to fluctuate greatly. "The stability and strength of the Indonesian capital market can only be realized if domestic investors, especially retail, rise up," said Hoesen at the Indonesia Capital Market Development event in Jakarta, Monday (14/12).
The institute said the addition of new SIDs in 2020 increased by 48.82 percent or 1,212,930 SIDs to 3,697,284 investors as of December 10, 2020. They are in stocks, bonds, mutual funds and other capital market investment instruments. Of that number, SID has only 488,088 shares, up 93.4 percent from the 2019 position. Currently, SID has 1,592,698 total stock investors, or 44.19 percent of investors in the capital market. Apparently, of the Rp 3,491 trillion total shareholdings listed on the Indonesian Eefek Exchange, 50.44 percent belonged to domestic retail investors. Meanwhile, the remaining 49.56 percent is owned by foreign investors.
Domestic retail investors also dominate the average daily transaction value of the stock exchange. Data on an annual basis or year to date, from January to November 2020, amounted to Rp. 8.42 trillion, as much as 45.9 percent of which was by retail investor activity. This value is also the highest in the history of the Indonesian capital market. Likewise with the frequency of transactions on the IDX. Annually, the range of average transactions in 2020 increased by 31.98 percent to 619 thousand transactions from 469 thousand sales and purchases in 2019. This is also the highest achievement in the history of the Indonesian stock exchange. From a monthly perspective, the highest transaction frequency occurred in November 2020 with an increase of 44 percent to 984 thousand transactions from 681 thousand transactions in the previous month. Of the top 20 highest transaction frequencies on the IDX, all occurred in 2020. This is another record achievement since the automation era of the IDX stock trading system, the Jakarta Automated Trading System (JATS) on May 22, 1995. Meanwhile, domestic retail investor activity, from the daily side and monthly, also the highest in the history of the capital market. The average active investor per day in 2020 increased 56 percent to 85,079 from 54,530 in 2019. Meanwhile, the average active investor per month this year has increased 45 percent to 270,975 SID from 186,102 in 2019. Hoesen appreciates the efforts of market literacy and inclusion inclusive Indonesian capital carried out by the IDX with the establishment of 30 IDX representative offices (KP) and 500 IDX investment galleries throughout Indonesia.
He stated that OJK will continue to cooperate and coordinate with all stakeholders in the Indonesian capital market. They are like the government, financial service institutions, self regulatory organizations (SRO), associations, and other industry players who have an important role in fulfilling the prerequisites for an advanced Indonesia. This cooperation and coordination, among others, is by building and providing good and quality infrastructure. An example is related to a solid capital market information distribution channel between 30 IDX KP and 500 IDX investment galleries. In addition, developing human resources who have good financial literacy and capital markets, are trained, and have optimism as well as being directly involved in improving the economy through the capital market. "It is also necessary to continue with sustainable development and visionary innovation by utilizing technology for capital market development," said Hoesen. These developments include the various features and services of the IDX 'trading engine' and the investor's media interface, which is an online trading application owned by stock exchange members.
Another way is through massive education through social media, influencers, communities, and Capital Market School (SPM) classes which are held online. Hasan Fawzi also conveyed these achievements. According to the Director of Development of the Indonesia Stock Exchange, 2020 will be the year of awakening for domestic investors. This can be seen from various positive achievements in terms of capital market development, especially in the aspect of retail investors. According to Hasan, the rate of the composite stock price index or IHSG in 2020 was indeed depressed from its high position of 6,299.54 points at the end of 2019. On March 24, 2020, it even fell to the level of 3,937.63 points. Even so, the JCI returned and continued to strengthen. In fact, half an hour ago it reached the level of 6,012.
