A simple guide to make an investment in Indonesia Stock Exchange

Indonesian Stock Exchange (IDX) is on its way of turning into the largest stock exchange in south-east Asia in terms of market capitalization, predicted to bypass Singapore in 2015. This suggest two times the present market cap to US$750 billion. Let’s check it in greater detail why you must be interested in IDX and how to get started.

“After I talk at seminars for investment and when discussing Indonesia, you could look at the eyes wide open and pens ready for writing notes.[…] over the last decade, it’s been the second-best performer among rising markets, powering beforehand with a median annual return of 25.2%.”  – Carl Delfield

Overall performance of the Jakarta Composite Index (JCI)

Jakarta composite index, that all stocks indexed in IDX of the modified capitalization-weighted index, has been displaying a sturdy increase in 2012, going up around 16% in the past 12 months to a historically high 4300 point level. Here’s the three-year overall performance of JCI:



Here is the 2012 overall performance, until today:

Jakarta Stock Exchange Composite Index (JCI)

Day Range4,290.29 – 4,325.5552-Week Range3,635.28 – 4,381.75
Year to Date+15.69%1-Year+16.40%

Source: Bloomberg

The sturdy increase has been displayed by the development and consumer-based organizations, profiting from Indonesia’s strong financial performance and record level consumer self-assurance. the reality is Indonesia does well by far any other predominant economy as consumer confidence index, which tops at 150 in November.

Here’s what an investment manager of us $500 million equity fund centered on Indonesia says:

Consumers are heading up the value chain and the use of more costly soaps and dishwashing detergents […] we’re seeing organizations do well that reflect the growing income levels in Indonesia.”   –   Bharat Joshi


Indonesia Exchange-Traded Funds

There are presently 3 ETF in NYSE:

IDXMarket Vectors Indonesia Index ETF$28.80+0.49%$412,704203,348+1.16%
EIDOMSCI Indonesia Investable Market Index Fund$30.22+0.33%$368,970254,221+3.10%
IDXJMarket Vendors Indonesia Small – Cap ETF$15.11-0.53%$2,2801,253n/a

Source: ETFDB

Moreover, you must check out ABERDEEN Indonesia fund (NYSE AMEX:if) which has proven a substantial 18.25% increase in 12 months so far until today. More statistics about it could be found on their website.

Except the aforementioned, there are numerous ETFs that contain Indonesian organizations in their portfolios. A number of the bigger ones are:

  • ETF (NASDAQ: pkol) Powershares global coal portfolio
  • ETF (NYSE: dent)Dent Tactical
  • ETF (NYSE: asea)Global x FTSE ASEAN 40
  • ETF (NYSE: ggem)Egshares consumer goods gems
  • ETF (NYSE: Kol)Market vectors coal

Indonesia Stock Exchange Trading Market

Just brokers are capable of trade-in IDX, this means that you will require to open an account with anyone. In keeping with Indonesia stock exchange internet site, there are presently 117 licensed brokers. Foreigners are allowed to open accounts and only require to give their id card and fill application to get started.

Even though broker charges quite vary, the same old quotes are the following:

  • Selling stock: 0.35%-0.4%
  • Buying stock: 0.25%-0.3%

A few brokers do not require any minimum amount deposit, but normal deposit necessities are among us $1k- $5k. 0.1% earnings tax when selling the stock.

There are numerous agents providing online buying and selling, expat finder has in comparison three of them.

Different Stock Market Indices

Except for the Jakarta composite index (jci), that follows all of the indexed organizations, there are numerous different indices that you could comply with as an investor. Here are some of the most noteworthy:

  • Lq45 index – follows the overall performance of the 45 most liquid companies indexed, protecting at least 70% of the transaction values.
  • Kompas100 – which includes 100 organizations selected through the local newspaper Kompas based totally on the overall performance and strong basics.
  • Ftse/ASEAN – mixed index of 5 ASEAN countries ( Indonesia, Singapore, Malaysia, Thailand, and the Philippines).
  • Idx30 – includes 30 corporations out of the lq45 that are selected by the IDX as the most powerful and most liquid organizations. Idx sees it as a fundamental reference for capital marketplace products.
  • Jakarta Islamic Index (JII) – includes organizations which follows the Syariah model however at the same time rank the various top organizations in terms of market capitalization and liquidity.

Except aforementioned, IDX also has 3 more sorts of the index, particularly individual index, sector stock price index, primary board and development board indices.

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