IDX operates under the supervision of the Indonesian Financial Services Authority (OJK) and is located in Jakarta. It has a long history that dates back to the early 20th century when the Dutch established Java Stock Exchange in 1912. The exchange changed its name to Jakarta Stock Exchange in 1977, and in 2007, it was renamed to Indonesia Stock Exchange after merging with Surabaya Stock Exchange.
IDX has a wide range of listed companies from various sectors, including consumer goods, finance, infrastructure, and manufacturing. Some of the largest listed companies on IDX include Bank Central Asia (BCA), Telekomunikasi Indonesia (Telkom), and Unilever Indonesia. These companies are also part of the Jakarta Composite Index (JCI), which is a benchmark for measuring the performance of IDX.
Investors can trade in IDX through various methods, including traditional brokers or through online trading platforms. Most brokers offer a range of services like market analysis, research, and advice to help investors in making informed investment decisions. Online trading platforms provide a convenient option for investors who prefer to trade from the comfort of their homes or offices.
IDX operates from 9 a.m. to 4 p.m. local time from Monday to Friday, excluding public holidays. The exchange is closed on weekends, which means all trades and transactions have to be done within this timeframe. This trading hours overlap with several other major stock exchanges in the region, including Singapore and Hong Kong, providing an opportunity for international investors.
One essential feature of IDX is the surveillance system that monitors market activities to ensure compliance with securities regulations. It also identifies potential market manipulation or insider trading. This ensures that investors can have confidence in the integrity of the exchange and the trading platforms.
Another important development in IDX is the introduction of Shariah-compliant investments. Indonesia has the largest Muslim population globally, and Shariah-compliant investments are vital in attracting both domestic and international investors interested in ethical investment options. IDX has a Shariah Index, which tracks the performance of companies that meet Islamic investment principles.
In conclusion, Indonesia Stock Exchange is an essential component of the Indonesian economy, providing a reliable platform for investment and capital formation. Investors interested in this emerging economy should consider investing in listed companies on IDX. With its robust surveillance system and increasing options for shariah-compliant investments, IDX has the potential to provide long-term opportunities for investors. However, investors must also be aware of risks associated with investing, including market fluctuations and political instability. By understanding the workings of IDX, investors can make informed investment decisions and maximize their returns.