Indonesia Stock Exchange

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Indonesia Stock Exchange
Bursa Efek Indonesia
Indonesia Stock Exchange (logo).svg
Indonesia Stock Exchange.jpg
Type Stock exchange
Location Kebayoran Baru, Jakarta, Indonesia
Coordinates 6°13′24.00″S 106°48′30.60″E / 6.2233333°S 106.8085000°E / -6.2233333; 106.8085000
Founded December 1912
Owner Financial Services Authority
Key people Tito Sulistyo (President director)
Currency Indonesian Rupiah
No. of listings 544[1]
Market cap IDR 5,753.6 trillion [2]
Volume IDR 1,844.59 trillion (2016) [2]
Indices IDX Composite
Jakarta Islamic Index
LQ-45
Website IDX.CO.ID

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 the end of 2016, the Indonesia Stock Exchange had 537 listed companies with a combined market capitalisation of IDR 5,753.6 trillion. In mid September 2016, based on Single Identification Number there were 500,037 domestic investors, of which 487,713 were retail investors and 12,324 institutional investors.[3] As of September 21,2016 total daily transactions averaged more than 250,000, with an average value of Rp 6,400 billion/day.[4]

History

Originally opened in 1912 under the Dutch colonial government, 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. 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). After the merger, the new entity has seven directors.

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[citation needed], 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.[5]

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 timezones that are one and two hours in advance, respectively.[6] (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 May 2, 2016 Indonesia Stock Exchange introduced new tick price with a lot as 100 shares as before.[7]

  • 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.[8] 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.[9]

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).[10] 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.[11]

IDX Custodian figure

On June 7, 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.[12]

See also

References

  1. ^ "IDX Company Profile". Retrieved 27 July 2017. 
  2. ^ a b "Indonesia Stock Exchange 2016 Annual Report" (PDF). Retrieved 27 July 2017. 
  3. ^ Zubi Mahrofi (September 18, 2016). "IDX: Stock Investors in Domestic Capital Market Reaches 500,037". 
  4. ^ "Frekuensi transaksi harian menembus target BEI". September 22, 2016. 
  5. ^ "IDX will start trading day earlier in January". 2 November 2012. 
  6. ^ "Indonesia stock exchange extends trading hours by January 2013". 
  7. ^ "Fraksi harga bawah jadi favorit investor". May 2, 2016. 
  8. ^ Asean Law Association, Indonesian Legal System, 2004
  9. ^ Indonesia, PT Bursa Efek. "Events". 
  10. ^ Post, The Jakarta. "New sharia index launched to boost liquidity, investor base". 
  11. ^ "Waspada Online – Pusat Berita dan Informasi Medan Sumut Aceh". 
  12. ^ Tia Dwitiani Komalasari (June 9, 2017). "Jumlah Investor Pasar Modal Tembus 1 Juta". 

External links

  • Otoritas Jasa Keuangan Republik Indonesia
  • PT Bursa Efek Indonesia
  • PT Kliring Penjaminan Efek Indonesia
  • PT Kustodian Sentral Efek Indonesia
  • PT Penilai Harga Efek Indonesia
  • Indonesia Stock Exchange
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