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IDX sets modest 2021 goals, expects lingering economic turbulence
"This pandemic is not over yet so we need to be conservative,” said Indonesia Stock Exchange (IDX) president director Inarno Djajadi
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Employees pass a screen displaying share prices at the Indonesia Stock Exchange (IDX) building in Jakarta on March 11. (Antara/Galih Pradipta)
T
he Indonesia Stock Exchange (IDX) is setting moderate targets for 2021, despite aggressive growth in new retail investors, daily average turnover and initial public offerings (IPOs) this year, in expectation of continuing economic fallout from the COVID-19 pandemic.
IDX president director Inarno Djajadi said on Tuesday that the bourse aimed to increase the number of new retail investors by 22 percent next year, lower than the growth recorded so far this year. As of Nov. 19, the Indonesian Central Securities Depository (KSEI) had recorded a 42.19 percent increase in retail investors to 3.53 million.
“The work-from-home order has encouraged people to try investing their funds in the capital market, so we believe the number of investors can increase further next year,” Inarno said during a virtual press event. “However, this pandemic is not over yet so we need to be conservative.”
Pandemic fears have battered the domestic stock market. The bourse’s main gauge, the Jakarta Composite Index (JCI), crashed to 3,937 in March, its lowest level in more than five years, as investors dumped risky assets. Since then, the index has made back some of its losses and is now down 8.35 percent year to date (ytd).
Read also: JCI to continue bullish trend until Q1 2021: Analysts
The JCI had jumped 0.85 percent as of 12:51 p.m. Jakarta time on Wednesday.
The bourse is also targeting an average daily turnover of Rp 8.8 trillion (US$628.6 million) in 2021, as it expects high volatility to continue to next year, Inarno said. The figure is slightly higher than the Rp 8.4 trillion in average daily turnover so far this year.
