Indonesia Stock Exchange

Indonesia Stock Exchange (Indonesian: Bursa Efek Indonesia) is a stock exchange based in Jakarta, Indonesia. It was previously known as the Jakarta Stock Exchange (JSX) before its name changed in 2007 after merging with the Surabaya Stock Exchange (SSX). As of December 2019, the Indonesia Stock Exchange had 656 listed companies.,[2][3][4] and total stock investors were about 1.1 million, which is increase 30 percent from previous year.[5]

Indonesia Stock Exchange
Bursa Efek Indonesia
TypeStock exchange
LocationKebayoran Baru, Jakarta, Indonesia
Coordinates6°13′24.00″S 106°48′30.60″E
Founded30 November 2007
OwnerStock Exchange Members
Key peopleInarno Djajadi (President director)
CurrencyIndonesian Rupiah
No. of listings656 (October, 2019)
Market cap$523 Billion (February, 2019)[1]
VolumeIDR 11.11 trillion/day (2017)
IndicesIDX Composite
Jakarta Islamic Index
LQ-45
Indeks Kompas100
Indeks BISNIS-27
Indeks PEFINDO25
Indeks SRI-KEHATI
Websitewww.idx.co.id
Indonesian Stock Exchange (Bursa Efek Indonesia) building in Jakarta, considered one of the oldest in Asia.

History

Originally opened in 1912 as Vereniging Voor Effectenhandel In Batavia under the Dutch colonial government acting as a branch of Amsterdamse Effectenbeurs. it was re-opened in 1977 after several closures during World War I and World War II. After being reopened in 1977, the exchange was under the management of the newly created Capital Market Supervisory Agency (Badan Pengawas Pasar Modal, or Bapepam), which answered to the Ministry of Finance. Trading activity and market capitalisation grew alongside the development of Indonesia's financial markets and private sector - highlighted by a major bull run in 1990. On 13 July 1992, the exchange was privatised under the ownership of Jakarta Exchange Inc. As a result, the functions of Bapepam changed to become the Capital Market Supervisory Agency. On 22 March 1995 JSX launched the Jakarta Automated Trading System (JATS). In September 2007, Jakarta Stock Exchange and Surabaya Stock Exchange merged and named Indonesian Stock Exchange by Indonesian Minister of Finance.[6] The current location of the Indonesian Stock Exchange is located in the IDX building in the Sudirman Central Business District, South Jakarta, near the current site of the Pacific Place Jakarta.

Merger

Both Jakarta Stock Exchange (JSX) and the Surabaya Stock Exchange (SSX) merged to form a new entity "Indonesia Stock Exchange" (Bursa Efek Indonesia).[6] After the merger, the new entity has seven directors.

Walkway collapse

On 15 January 2018, a mezzanine walkway that was hanging on the second floor of the IDX collapsed, which sustained at least 77 injuries. Most of the injured were university students who were visiting the building, when the incident occurred at about 12:10 WIB (UTC+7:00).[7][8][9]

Regulation

Trading hours

All times are based on the Jakarta Automated Trading System (JATS), currently in WIB (UTC+7)

Prior to 2013, the index opens from 08.00-17.40, divided into the following:

  • Pre-opening trade (07.30-08.00)
  • 1st session (Monday-Thursday 08.30-12.30, Fridays 08.30-11.30)
  • Lunch break (Monday-Thursday 12.30-13.30, Fridays 11.30-14.00)
  • 2nd session (Monday-Thursday 13.30-17.00, Fridays 14.00-17.00)

In November 2012, IDX received an approval from the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) for its plan to start trading 30 minutes earlier and instituting a pre- and post-closing session to avoid price manipulation.[10]

In effect since 2 January 2013, the regular market opens from 09.00 to 17.40, with the following breakdowns:

  • Opening session:
    • Pre-opening trade (08.45-08.55)
    • JATS processes pre-opening prices and recapitulates transactions. (08:55:01 - 08:59:59)
  • 1st session of all trading (Monday-Thursday 09.00-12.00, Fridays 09.00-11.30)
  • Lunch break (Monday-Thursday 12.00-13.30, Fridays 11.30-14.00)
  • 2nd session of trading (Monday-Thursday 13.30-15.50, Fridays 14.00-15.50)
  • Closing session:
    • Pre-closing trade (15.50-16.00)
    • JATS processes pre-closing prices and recapitulates transactions. (16:00:01 - 16:04:59)
    • Post-closing trade (16.05-16.15)

Negotiated market follows the same time as regular market, but extend to 16:15 on all weekdays.

The trading hour was advanced 30 minutes earlier to accommodate traders from Central and Eastern Indonesia time zones that are one and two hours in advance, respectively.[11] (JATS is based on WIB) The change is also meant to put it in line with other Asian markets, namely Singapore and Hong Kong stock exchanges.

Lot and tick price

To increase transactions, starting on 2 May 2016 Indonesia Stock Exchange introduced new tick price with a lot as 100 shares as before.[12]

  • below Rp200, the tick price is Rp1
  • from Rp200 to below Rp 500, the tick price is Rp2
  • from Rp500 to below Rp2,000, the tick price is Rp5
  • from Rp2,000 to below Rp5,000, the tick price is Rp10
  • equal to or above Rp5,000, the tick price is Rp25

Stock Indices

Two of the primary stock market indices used to measure and report value changes in representative stock groupings are the Jakarta Composite Index and the Jakarta Islamic Index (JII). The JII was established in 2002 to act as a benchmark in measuring market activities based on Sharia (Islamic law). Currently, there are approximately 30 corporate stocks listed on the JII.[13] The FTSE/ASEAN Indices were launched by the five ASEAN exchanges (Singapore Exchange, Bursa Malaysia, The Stock Exchange of Thailand, Jakarta Stock Exchange, and The Philippine Stock Exchange) and global index provider FTSE on 21 September 2005. The indices, covering the five ASEAN markets, are designed using international standards, free float adjusted, and based on the Industry Classification Benchmark (ICB). The indices comprise FTSE/ASEAN Benchmark Index and FTSE/ASEAN 40 tradable index. The FTSE/ASEAN 40 index is calculated on a real-time basis from 9:00 a.m. and the closing index is calculated at 6:00 p.m. (Singapore time). The FTSE/ASEAN benchmark index is calculated on end-of-day basis.

Besides Jakarta Composite Index and JII, IDX also has 4 more types of index, namely Individual Index, Sector Stock Price Index, LQ 45 Index, Main Board and Development Board Indices.[14]

At 12 May 2011 Indonesia Stock Exchange officially launched a new Indonesia Sharia Stock Index (ISSI), which comprises 214 Indonesian stocks which have been screened by the Majelis Ulama Indonesia (Indonesia Ulema Council).[15] Fatwa Number 80 from Indonesia Ulema Council is expected to make public no longer have any doubt to make sharia investment in the capital market to eventually increase the number of the domestic investors in the Indonesia Stock Exchange.[16]

IDX Custodian figure

On 7 June 2017, IDX Custodian noted that there are 1,000,289 investors based on Single Identification Number (SID) or increase by 12 percent in less than full 6 months. At the end of 2016, there are 894,116 SID. Slightly more than 50 percent of the investors are local investors. And almost 50 percent of the investors are mutual fund investors.[17]

See also

References
  1. "Indonesia to ease trading rule to lure mom-and-pop investors". The Star. Retrieved 3 November 2019.
  2. "Indonesia Stock Exchange Sees Fastest Membership Growth in Asia". Jakarta Globe. Retrieved 3 November 2019.
  3. Zubi Mahrofi (18 September 2016). "IDX: Stock Investors in Domestic Capital Market Reaches 500,037".
  4. "Frekuensi transaksi harian menembus target BEI". 22 September 2016.
  5. Fajar Anjungroso (30 December 2019). "Bursa Efek Sebut Investor Saham Capai 1,1 Juta, Rata-rata Transaksi Rp 9,1 Triliun/Hari".
  6. "Brief history of Indonesia Stock Exchange". Indonesia Stock Exchange. Retrieved 30 May 2018.
  7. "People evacuated from Indonesia Stock Exchange after collapse". Reuters. 15 January 2018. Retrieved 15 January 2018.
  8. "Jakarta Stock Exchange Evacuated After Floor Collapses". Bloomberg.com. 15 January 2018. Retrieved 15 January 2018.
  9. Indonesia, CNN. "Selasar Gedung BEI Roboh, Ratusan Orang Terluka". CNN Indonesia. Retrieved 15 January 2018.
  10. "IDX will start trading day earlier in January". 2 November 2012.
  11. "Indonesia stock exchange extends trading hours by January 2013".
  12. "Fraksi harga bawah jadi favorit investor". 2 May 2016.
  13. Asean Law Association, Indonesian Legal System, 2004
  14. Indonesia, PT Bursa Efek. "Events". Archived from the original on 11 September 2012. Retrieved 1 April 2010.
  15. Post, The Jakarta. "New sharia index launched to boost liquidity, investor base".
  16. "Waspada Online – Pusat Berita dan Informasi Medan Sumut Aceh".
  17. Tia Dwitiani Komalasari (9 June 2017). "Jumlah Investor Pasar Modal Tembus 1 Juta".
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