How do I get to the Indonesia Stock Exchange (IDX)?
In Indonesia, the Indonesia Stock Exchange (IDX) handles trades in stocks and bonds. The main goal of the IDX is to set up systems that make trading stocks fair, organized, and efficient. It had a high number of investors in 2021; as of 2020, it had 713 companies listed.
How the Indonesia Stock Exchange (IDX) works
The Jakarta Stock Exchange (JSX) and the Surabaya Stock Exchange (SSX) joined together to form the Indonesia Stock Exchange (IDX). The Dutch East India Company helped start the JSX, Indonesia’s first stock market, in 1912. Parts of both World Wars I and II kept the Jakarta Stock Exchange closed. Only the Indonesian government bond traded when it reopened in 1952. In 1956–1977, the exchange stopped working. When it started again in 1977, trade was still slow, with only a few dozen companies mentioned.
From 1988 to 1992, changes to regulations have made trade better. In 1995, the exchange started using an automatic selling method. In 2002, it started letting people trade from afar. With the merger of the Jakarta Stock Exchange and the Surabaya Stock Exchange in 2007, the Indonesia Stock Exchange was born. The exchange changed its trade system and built a new data center in May 2018.
It’s more dangerous for buyers to put money into emerging countries like Indonesia. Unlike advanced economies like the US, Europe, and Japan, emerging markets don’t have as much market efficiency or strict rules about accounting and securities. However, emerging markets usually have a physical financial infrastructure with banks, a stock exchange, and a single currency.
Changes on the Indonesian Stock Exchange
IDX’s goal has been to become a trustworthy, world-class stock market. The following were some of the most essential things the IDX did in its 2020 yearly report:
- Added 51 new companies, which is 110.87% more than planned
- 7th in the world for the most new companies that have gone public.
- Five hundred sixty-six more buyers, the most since 2016
- On December 22, 2020, the Indonesian capital market saw the most daily trades of any time in its history.
In 2020, IDX increased the number of investors and their involvement, the most ever seen on a stock market. The number and standards of listed companies went up on the IDX. It even had the most company listings in ASEAN. Nine Southeast Asian countries make up the Association of Southeast Asian Nations (ASEAN). They work together to boost culture and economic growth. In addition to Indonesia, Malaysia, the Philippines, Singapore, and Thailand are also part of ASEAN.
As of the end of 2020, there are 713 companies on the stock market. There are 51 new assets and 47 new exchange-traded funds (ETFs) on the market. You can now also buy new company bonds and REITs for real estate investment trusts. REITs use the money of many owners to buy business properties and collect rent.
The number of daily active buyers on the exchange rose 73% from 2019 to 2020. In 2021, the market would be worth Rp 6,970 trillion ($490 billion).
Conclusion
- In Indonesia, the Indonesia Stock Exchange (IDX) handles trades in stocks and bonds.
- The main goal of the IDX is to set up systems that make trading stocks fair, organized, and efficient.
- In 2021, IDX increased the number of clients and their involvement. The amount and number of daily trades set a new high for the market.
- The IDX had 713 companies listed by the end of 2020.
