mid the increase of retail investors in Indonesia, securities firm Mandiri Sekuritas is seeing more value investors from regional areas such as Medan in North Sumatra, Surabaya in East Java and Balikpapan in East Kalimantan.
Mandiri Sekuritas managing director Lisana Irawati said she was happy that value investors existed although the numbers were not large, with only two to three value investors per city excluding Jakarta.
"It is not easy to become a value investor as it requires intensive personal research and a lot of money to buy 'quality stock'," she said at a Mandiri Sekuritas award event at the Indonesia Stock Exchange (IDX) building in Jakarta on Friday.
(Read also: Mandiri Sekuritas transforms into fintech company to attract more investors)
Unlike usual stock trading, which uses a daily stock price and trade volume as indicators for buying and selling stock, Lisana said value investors looked at a company's fundamental condition and held stock for a relatively long period.
She added that as regional traders gained more knowledge and experience, they started to do more intensive research about company fundamentals and applied the style of top US value investor Warren Buffett in investing.
"Currently they invest a lot in infrastructure shares such as state-owned construction companies," Lisana said.
She added that the investors also regularly attended public exposes in Jakarta to learn about companies more before making investment decisions. (jun)
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