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Number of retail investors inches toward 1m as brokerages, IDX push campaign
The low participation of individuals in Indonesia’s stock market leaves much potential to be tapped by securities companies operating in the country, so much so that they are tailoring their business strategies toward luring local individuals.
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A trading board shows prices of shares included in the Jakarta Composite Index (JCI). (Antara/Sigid Kurniawan)
The low participation of individuals in Indonesia’s stock market leaves much potential to be tapped by securities companies operating in the country, so much so that they are tailoring their business strategies toward luring local individuals.
The number of retail equity investors registered at the Indonesian Central Securities Depository (KSEI) has more than tripled from 279,555 in 2012 to 993,229 as of Aug. 5. Despite the rapid increase, still fewer than 1 percent of Indonesia’s population are individual investors, which compares to 26 percent in Singapore and 7.8 percent in Malaysia.
This, however, is a blessing in disguise for securities companies that see this low individual stock market penetration as a business opportunity. They are now targeting people who have little to zero knowledge about stock investment and small investment amounts.
To lure people into open accounts before they can invest in the stock market, securities companies have begun to change their business strategy by creating social media content targeting individual investors, approaching online and offline communities and organizing events with public figures.
“Since last year, we have been bringing our online campaigns offline to include a human touch in today’s digital era,” said Bernadus Wijaya, vice president of retail and business development at Sucor Sekuritas, which has organized multiple offline events to beat the drum for capital market investment.
