IDX Broker Code Removal Policy Deemed Good for Market Behavior

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Petir Garda Bhwana

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  • A customer is monitoring stock movements from their homes while conducting WFH in Jakarta, Thursday, July 15, 2021. The Composite Stock Price Index (JCI) closed up 1.13 percent or 67.54 points to 6,046.75. Tempo/Tony Hartawan

    A customer is monitoring stock movements from their homes while conducting WFH in Jakarta, Thursday, July 15, 2021. The Composite Stock Price Index (JCI) closed up 1.13 percent or 67.54 points to 6,046.75. Tempo/Tony Hartawan

    TEMPO.CO, Jakarta - Ajaib Group Co-Founder & CEO Anderson Sumarli on Wednesday assessed the policy from the Indonesia Stock Exchange (IDX) of closing broker code information during stock trading hours will encourage securities companies to actively issue stock research. This policy, according to the IDX website, has been in effect since December 6. 

    "I agree that closing the broker code will encourage capital market business actors to be more active in conducting research related to stock fundamentals,” said Anderson in a written statement on December 8. “On the other hand, these business actors are also encouraged to increase financial inclusion and literacy.”

    Citing Antaranews, Anderson said the research results from securities companies will trigger retail investors to be more independent and understand the process of investing in the capital market. He also argues that since the COVID-19 pandemic, retail investors, especially millennials and Generation Z, have realized the importance of financial freedom.

    His company understands that the broker code non disclosure policy is also meant to minimize and prevent any follow-up actions to buy certain shares from a single investor to another, leading to better market conduct.

    His sentiment was echoed by Indo Premier Sekuritas analyst, Mino, who said IDX's broker code policy will only have a positive effect in creating a new habit for both the investors and traders. 

    “It will help form quality investors or traders, those who conduct fundamental or technical analysis on stocks they look for and not just follow the masses,” said Mino.

    Read: Four Companies Set to Hold IPOs in IDX Today

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