Covid-19 Pandemic, IDX: More Investors Coming

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Mahinda Arkyasa

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  • TEMPO.CO, Jakarta - Director of the Indonesian Stock Exchange (IDX) Inarno Djajadi said that there has been an increase in the number of Single Investor Identification (SID) since the beginning of 2020. Whereas, Inarno said that capital outflow continues to occur due to the Covid-19 pandemic. As of March, the number of shares SID had reached 1,160,542 accounts. The number is 55,932 accounts or equals to 4.82 percent higher compares to the number recorded in early 2020.

    "One of the factors, local investors trust begins to recover. In addition, some shares are indeed very cheap," Inarno said to Tempo on Friday, May 1, 2020.

    Furthermore, Inarno said that the increase can also be associated with several general meetings of shareholders (RUPS) of a number of issuers who distribute large dividends. In general, Inarno said that there has been a 194,685 increase in the number of investors, which equals to 7.84 percent from the beginning of 2020 until March 2020. Consequently, the total number of SID in shares, hedge funds, and bonds is recorded as many as 2,679,039 as of March 2020.

    IDX Development Director Hasan Fauzi, said that shares SID continues to increase up until April 2020. Based on the latest data, the number of shares SID had reached 1,179,264 accounts. Hasan said, there are 74,654 new shares SIDs, which equals to 6.8 percent growth. According to Hasan the increase was originated from increasing interests from domestic retail investors.

    "Information dissemination and education we have been organizing, and trend of decreasing blue-chip stocks prices, turns out to attract the interest and considered to be an opportunity for new investors," Hasan said.

    Despite the ongoing pandemic, Hasan said that the stock exchange together with members and investment managers continue to provide education for investors and potential investors through online streaming. In addition, Hasan said that the stock exchange has provided a special webpage to allow investors to open stock accounts and investor fund account online.

    "For this year's target, the growth of SID or stock market investors in total, either shares investors, hedge funds, bonds, and other stocks is expected to reach 25 percent," Hasan said.

    An economist from Universitas Perbanas Piter Abdullah, asserted that the decreasing prices of stocks during the Covid-19 pandemic has become an interesting investment opportunity that promises long-term profits. Moreover, Piter said that most blue-chip stocks prices have been reduced by 50 percent, which is considered to be a good time to purchase shares.

    Piter predicted that the trend will continue until May to June period, before prices rebound. Piter said that to anticipate such a condition, investors should maintain their liquidity.

    "Collect cheap blue-chip stocks, but maintain liquidity, save some funds to anticipate bod conditions, foe example, if the stock prices drop below prediction," Piter said.

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