IDX Says Investors Can Buy Big Caps Shares With Capital Below IDR 50,000

JAKARTA - The Indonesia Stock Exchange (IDX) stated that through single stock futures (SSF) products, investors can buy shares of Big Caps (large capitalization) companies with capital below IDR 50,000.

Director of Development of PT Bursa Efek Indonesia (IDX) Jeffrey Hendrik said that through Single Stock Futures (SSF) products, IDX requires an initial margin or capital minimum for SSF transactions of 4 percent of the value of share transactions.

"For example, if the shares have a price per share of IDR 10,000, then for 1 lot or the equivalent of 100 shares, investors need to spend IDR 1 million. Meanwhile, for the SSF shares, investors only need to spend 4 percent of the value of the share transaction, or IDR 40 thousand," Jeffrey said quoting Antara.

He continued, the IDX will issue SSFs with underlying shares originating from the LQ-45 index, which in the early stages, the IDX will issue SSFs with underlying shares of BBCA, BBRI, MDKA, TLKM, and ASII.

"This certainly provides attractive opportunities for investors or traders because with a much smaller capital, investors can get exposure from the largest and most liquid company shares in Indonesia," said Jeffrey.

He explained that the fundamental difference between stocks and SSF in the context of financial instruments is that shares provide investors with ownership rights in a company, including dividend rights and votes in general meetings of shareholders.

"Meanwhile, he continued, SSF is a contract that allows investors to speculate or hedge stock price movements without having to own the shares directly," said Jeffrey.

Regarding capital, he explained that stocks require full payments according to market prices, with the main risk of decreasing the value of shares itself.

Meanwhile, on the other hand, SSF uses leverage, so that the required capital is smaller, however, the risk is also greater because the potential profit and loss remains equivalent to owning shares directly.

In general, stocks are more suitable for long-term investment with a focus on passive ownership and income. SSF is more often used by experienced investors for short-term trading as well as for hedging strategies over its stock portfolio," Jeffrey said.

To be able to recognize and start investing in SSF products, Jeffrey explained that investors can see the code listed on the Online Trading page.

Unlike shares that have a ticker code in the form of four letters, SSF consists of four underlying shares plus two codes representing the moon and the year the contract is due so that it will be easily identified by investors.

"For example, if SSF has an underlying stake in TLKM and is due in October 2024, then the SSF will have a TLKMV4 code. V is a code for October and 4 is a code for 2024," said Jeffrey.

He continued, another example is if SSF has an underlying BBRI and is due in January 2025, then the SSF will have a code BBRIF5. As for the details of the code for the month due for the contract, including January code F, February code G, March code H, April code J, May code K, June code M, code M, August code N, code Q, September code U, code V, November code X, and December code Z.

Jeffrey continued, investors can start investing in SSFs and other derivative products available on the IDX by opening derivative securities accounts on Exchange Members (ABs) registered as Derivative ABs.

Currently, AB derivatives who have provided derivative trade are Binaartha Sekuritas, and there are three other ABs currently in the onboarding process both from system supply and administration and are expected to become Derivative ABs in the near future.