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Jakarta Post

Number of retail investors inches toward 1m as brokerages, IDX push campaign

  • Riska Rahman

    The Jakarta Post

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Jakarta   /   Thu, August 15, 2019   /  04:18 pm
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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 in...