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Indonesian portfolio investors grow at five-year high in 2021
The number of stock market investors grew by 89.58 percent to 7.35 million as of Dec. 17.
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ndonesian portfolio investor numbers grew at a five-year high in 2021 as housebound millennials and Generation Zers flocked to the market, facilitated by fintech apps, latest Indonesian Central Securities Depository (KSEI) data show.
The KSEI reported on Thursday that the total number of portfolio investors – indicated by the number of single investor identities (SIDs) – reached 7.35 million as of Dec. 17, marking an increase of 89.58 percent from last year.
This growth rate is the highest since 2016, when investor numbers grew 105.9 percent annually to 434,107, similar data shows.
KSEI director Supranoto Prajogo said on Thursday that 73.61 percent of the investors had opened their accounts through fintech selling agents.
“Therefore, digital platforms have become a means that many investors use to invest in the stock market,” he said.
Many young Indonesians picked up day trading and portfolio investments during the pandemic 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. Aside from mutual funds, bonds and stocks, Indonesians are also investing in cryptocurrencies.
The rise of young retail investors led to a growth spurt for investment start-ups, which took 24 percent of the US$904 million fintech funding in Indonesia this year, second only to the 36 percent that went to payment platforms, according to the 2021 edition of the "FinTech in ASEAN" report.
Read also: Fintech expands retail investment among young Indonesians
An overwhelming majority of investors, 6.7 million held mutual funds, followed by those holding stocks at 3.41 million and the rest holding government bonds at 607,493, KSEI data show.
The majority of investors, around 60 percent, were under 30 years old, while 21.52 percent of the total were between 31 and 40 years old, Prajogo added.
Some 32.88 percent of investors were employees, either a private employee, civil servants or teachers, KSEI data show. Students accounted for 27.82 percent.
Over half of investors earned between Rp 10 million (US$703.63) and Rp 100 million, according to the KSEI. Investors earning less than Rp 10 million accounted for 36.25 percent of the total.
