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‘Rise of domestic retail investors’ increases IDX net profits by 9.5%
The Indonesia Stock Exchange (IDX) booked positive growth in finances last year amid a surge in new retail investors.
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A screen showing the movement of the Jakarta Composite Index (JCI) during an opening session at the Indonesia Stock Exchange (IDX) in Jakarta on May 25, 2020. (Antara/M Risyal Hidayat)
T
he Indonesia Stock Exchange (IDX) saw its net profits rise 9.5 percent annually to Rp 487.41 billion (US$33.55 million) last year buoyed by a day trading trend among young Indonesians.
The IDX reported on Tuesday that its revenue rose 0.6 percent year-on-year (yoy) to Rp 1.92 trillion last year driven by higher transaction-related income as the number of stock market investors rose by 56 percent to 3.88 million over the same period.
The bourse also cut its costs by 3.2 percent yoy to Rp 1.28 trillion last year.
“The year 2020 saw a rise in domestic retail investors,” IDX president director Inarno Djajadi told reporters in an online press conference on Tuesday.
Many young Indonesians picked up day trading last year to make use of longer at-home times and to alleviate job security concerns as businesses implemented work from home policies and reduced staff costs.
Read also: The rise of the retail investor: A new force in Indonesia’s pandemic-hit stock market
The rise of retail investors provided a buffer for the local bourse as foreign investors dumped risky emerging market assets, which led the benchmark Jakarta Composite Index (JCI) to drop to a low of 3,937 on March 24, 2020. The JCI closed at 5,985 on Wednesday.
