KSEI Reveals The Number Of Local Investors Is Still Bigger Than Foreigners

Photo: Aris Nurjani/VOI

JAKARTA - The Indonesian Central Securities Depository (KSEI) reports that capital market investors have reached 12.15 million as of December 27, 2023. This figure grew 17.88 percent compared to the previous year's 10.31 million investors.

Meanwhile, the number of investors consists of the number of stock investors and other securities amounting to 5.25 million, mutual funds 11.40 million, state securities or SBN 1 million.

President Director of the Indonesian Central Securities Depository, Samsul Hidayat, said that the number of capital investors of around 99.69 percent is the number of local investors. Meanwhile, foreign investors only 0.31 percent or around 37,680.

Samsul continued, although the amount was small, in terms of assets, foreign investors controlled 41.96 percent of assets in the capital market. Meanwhile, the remaining 58.04 percent of assets in the capital market are controlled by local investors.

Meanwhile, based on C-BSET, the value of investor assets reached IDR 7,736 trillion or grew 15.02 percent on an annual basis. Among them, 58.04 percent came from total assets controlled by domestic investors.

Samsul conveyed that in general, the composition between local and foreign investors in the Indonesian capital market is still unbalanced, but there is still potential in the future.

"The potential of foreign investors is still open in terms of the limited number of investors. This requires government policies to encourage foreigners," he said at the 2023 IDX Trading Closing Inauguration Press Conference, Friday, December 29.

According to Samsul, the government needs to make a wider policy to increase the number of foreign investors who are still limited in the Indonesian capital market, as well as promote the Indonesian market outside.

Samsul said that until now, in terms of the distribution of investors, capital market activities are still dominated in Java with 67.58 percent of investors, following Sumatra 16.98 percent, Kalimantan 5.54 percent, Sulawesi 5 percent, Bali and Nusa Tenggara 3.62 percent, and Maluku and Papua 1.18 percent.

In addition, retail investor transactions in the market are also increasingly containing. In the January period of November 2023, retail contributed 38 percent or Rp4 trillion of the Average Daily Transaction Value (RNTH).

On the same occasion, President Director of the Indonesia Stock Exchange, Iman Rachman, said that retail investors' participation still has the highest portion of transactions throughout 2023.

"This reflects investor confidence that is still quite well maintained despite being faced with various challenges and the global and domestic economic situation," said Iman.

In addition, in the same period local institutional investors contributed 28.7 percent or Rp3 trillion. Meanwhile, foreign investors amounted to Rp3.5 trillion or equivalent to 33.3 percent.