Indonesia Stock Exchange


Indonesia Stock Exchange is a stock exchange based in Jakarta, Indonesia. It was previously known as the Jakarta Stock Exchange before its name changed in 2007 after merging with the Surabaya Stock Exchange. As of October 2019, the Indonesia Stock Exchange had 656 listed companies. In December 2017, based on Single Identification Number there were 628,346 investors, of which 51.33% were foreign investors and 48.67% domestic investors. In December 2019, the total stock investors were 1.1 million and increase 30 percent from previous year.

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, 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. In September 2007, Jakarta Stock Exchange and Surabaya Stock Exchange merged and named Indonesian Stock Exchange by Indonesian Minister of Finance. 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 and the Surabaya Stock Exchange merged to form a new entity "Indonesia Stock Exchange". After the merger, the new entity has seven directors.

Accidents & Incidents

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.

Regulation

Trading hours

All times are based on the Jakarta Automated Trading System, currently in WIB
Prior to 2013, the index opens from 08.00-17.40, divided into the following:
In November 2012, IDX received an approval from the Capital Market and Financial Institution Supervisory Agency for its plan to start trading 30 minutes earlier and instituting a pre- and post-closing session to avoid price manipulation.
In effect since 2 January 2013, the regular market opens from 09.00 to 17.40, with the following breakdowns:
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. 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.
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. The JII was established in 2002 to act as a benchmark in measuring market activities based on Sharia. Currently, there are approximately 30 corporate stocks listed on the JII. The FTSE/ASEAN Indices were launched by the five ASEAN exchanges 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. 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.. 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.
At 12 May 2011 Indonesia Stock Exchange officially launched a new Indonesia Sharia Stock Index, which comprises 214 Indonesian stocks which have been screened by the Majelis Ulama Indonesia.
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.

IDX Custodian figure

On 7 June 2017, IDX Custodian noted that there are 1,000,289 investors based on Single Identification Number 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.