Capital Market Predicted Not to Be Affected by 2024 Election, BEI: Investors Are Starting to Get Used to It

JAKARTA - The Indonesian Stock Exchange (BEI) believes that trading on the stock exchange will not have a significant impact on the holding of the 2024 general election.

Head of the Indonesian Stock Exchange (BEI) Research Division, Verdi Ikhwan, said that transactions in the capital market would not have a significant impact if there was a democratic party next year and investors were already getting used to the political year.

"The 2024 elections are not just us, the big countries that will hold elections include Russia and other countries. "It seems investors are starting to get used to elections, even though there was turmoil at the beginning of the election, but mostly after that conditions were safe," said Verdi virtually, Wednesday, December 13.

Verdi said that historically, if you look at the previous three or four elections, the total number of transactions has relatively fallen, but after the election, the number of transactions will increase slowly.

"In 2024 I am quite confident and optimistic that our transactions can increase," he said.

Verdy said that growth from the supply and demand side was quite good this year. Where the number of issuers to date is more than 900 issuers and the number of investors is more than 5 million SID.

"This is actually our capital to face 2024, especially for transaction value," he said.

Verdy said that in general the number of transactions has increased after the election and with the number of issuers and investors continuing to grow, it is hoped that transaction growth will increase in 2024.

"To face 2024, transactions in particular are expected to increase. "Meanwhile for new issuers, (historically) in the last 6 years the number of issuers has been around 50," he stressed.

For information, based on data from PT Kustodian Sentral Efek Indonesia (KSEI), the number of stock investors was recorded at 5.17 million investors as of November 30 2023, or an increase of 16.57 percent year-to-date (ytd). Meanwhile, the total number of investors in the capital market was recorded at 12.02 million investors.

Apart from that, the IDX has revised the RNTH target this year from the previous IDR 14.75 trillion to IDR 10.75 trillion by the end of 2023.

Meanwhile, in total, IDX is targeting the issuance of 230 new securities in 2024, an increase of around 15 percent compared to the previous year's 200 securities. Meanwhile, the targets for issuing new securities include stock securities, exchange traded funds (ETF), new corporate bonds, real estate investment funds (DIRE), asset-backed securities (EBA), and structured warrants.