Indonesia Stock Exchange (IDX)
What Is the Indonesia Stock Exchange (IDX)?
The Indonesia Stock Exchange (IDX) handles securities transactions in the country of Indonesia. The primary goal of the IDX is to give the infrastructure to empower orderly, fair, and efficient trading of securities. The IDX saw a record number of investors in 2021 and has 713 company postings starting around 2020.
Understanding the Indonesia Stock Exchange (IDX)
The Indonesia Stock Exchange (IDX) was made by the merger of the Jakarta Stock Exchange (JSX) and the Surabaya Stock Exchange (SSX). The JSX was Indonesia's most memorable stock exchange, established in 1912 for the interest of the Dutch East India Company. The Jakarta Stock Exchange was closed during parts of World Wars I and II. At the point when it resumed in 1952, the main exchanged security was the Indonesian government bond. The exchange became inactive from 1956-1977, and in spite of being reactivated in 1977, trading activity kept on being slow, with two or three dozen companies listed.
Regulatory changes that were sanctioned somewhere in the range of 1988 and 1992 better trading activity. The exchange presented its automatic trading system in 1995 and started to execute remote trading in 2002. In 2007, the Jakarta Stock Exchange merged with the Surabaya Stock Exchange to form the Indonesia Stock Exchange. In May of 2018, the exchange refreshed its trading system and made another data center.
Emerging markets like Indonesia have their own set of extra risks for investors. Emerging markets generally don't have the level of market efficiency and severe standards in accounting and securities regulation to be on par with advanced economies (like the United States, Europe, and Japan), however emerging markets truly do ordinarily have a physical, financial infrastructure, including banks, a stock exchange, and a unified currency.
Indonesia Stock Exchange Developments
The IDX has strived to turn into a dependable and recognized world-class stock exchange. In its annual report of 2020, the key accomplishments for the IDX incorporated the accompanying:
- Listed 51 new companies, 110.87% higher than focused on
- Positioned seventh in the world for the number of recently listed companies
- Increase of 56% of investors, highest beginning around 2016
- Recorded the highest daily trading frequency in the history of the Indonesian Capital Market on Dec. 22, 2020
In 2020, IDX prevailed with regards to supporting the number and participation of investors, which set another record for the history of the stock exchange. The IDX saw an increase in quantity and quality of listed companies, remembering recording the biggest number of company postings for ASEAN. The Association of Southeast Asian Nations (ASEAN) is a group of 10 nations in Southeast Asia that team up to advance economic and social growth. Other than Indonesia, a portion of the other ASEAN countries incorporate Malaysia, The Philippines, Singapore, and Thailand.
The total number of listed companies remains at 713 toward the finish of 2020. The exchange keeps on extending by adding 47 new exchange traded funds (ETFs) and 51 new securities. Additionally, new corporate bonds and REITs or Real Estate Investment Trusts have been added. REITs pool investors' money to invest in commercial properties and collect the rent.
In 2020, the exchange saw a 73% increase in the number of daily active investors from 2019, and arrived at a market capitalization of Rp 6,970 trillion ($490 billion) by 2021.
Features
- The IDX had 713 listed companies toward the finish of 2020.
- The Indonesia Stock Exchange (IDX) handles securities transactions in the country of Indonesia.
- The primary goal of the IDX is to give the infrastructure to empower orderly, fair, and efficient trading of securities.
- In 2021, IDX prevailed with regards to helping the number and participation of investors. Daily trading values and frequency set another record for the exchange.
