Simplification Of Account Opening Encourages Growth In The Number Of Capital Market Investors

KSEI signed a Cooperation Agreement with the Ministry of Home Affairs' Directorate General of Dukcapil in Jakarta, Wednesday 18 December. (Ist)

JAKARTA - The Indonesian Central Securities Depository (KSEI) stated that the simplification in the account opening process resulted in a significant growth in the number of investors in the country's capital market. KSEI said that throughout 2019, the growth in the number of investors reached 51 percent compared to the end of 2018.

"Currently, the number of capital market investors has reached 2.5 million single investor identification (SID) as of December 16, 2019 for all types of investors ranging from stocks, mutual funds and state securities (SBN)," said KSEI President Director Uriep Budi Prasetyo at Jakarta, Wednesday 18 December.

He admitted that the simplification of opening an account has indeed accelerated and made it easier to open an account in the capital market, from what could have been up to two weeks to less than an hour. KSEI also continues to collaborate with Exchange Members (AB), investment managers (MI) and a number of other institutions to cooperate with the Directorate General of Population and Civil Registration (Ditjen Dukcapil).

KSEI has collaborated with the Dukcapil Directorate General for Population Data utilization since 2014. Meanwhile, with capital market industry players, this cooperation has been ongoing since November 2016. The collaboration is related to the Utilization of Population Identification Numbers, Population Data and Electronic Identity Cards (KTP-el). in capital market services.

"Using an electronic ID card helps improve the effectiveness and efficiency of certification and validation of investor identities. NIK data, names and dates of birth are more accurate," said Uriep.

Most recently, today, KSEI and 104 capital market industry players consisting of 74 securities companies, 19 investment managers, 8 Mutual Fund Selling Agents, and three capital market supporting institutions (KSEI, TICMI and IDXSTI) have again collaborated with the Directorate General of Dukcapil.

The signing was carried out simultaneously by the Director General (Dirjen) of Dukcapil Zudan Arif Fakrulloh with representatives of each company witnessed by the Director of Investment Management of the Financial Services Authority (OJK) Sujanto, as well as the directors and commissioners of the Self-Regulatory Organizations (SRO).

KSEI hopes that the simplification of opening investment accounts can also make the distribution of investors even more evenly distributed throughout all regions in Indonesia. Thus, the role of the capital market in the Indonesian economy is bigger than before.

Data from KSEI in October 2019 showed that total investors in the capital market (SID) had reached 2.28 million until 23 October 2019. This number of investors was dominated by millennials or under 30 years of age, although the number of assets was still small when compared to the total. assets of investors over the age of 60.

According to KSEI's records in October 2019, the demographic of investors who were young or under 30 years of age reached 43.28 percent. Even though in terms of total assets owned, it tends to be the smallest of all age demographics, amounting to IDR 12.15 trillion.

In terms of total assets, investors who have the most assets are over the age of 60 with total assets of IDR 243.49 trillion. However, in terms of number of investors, this group is only 5.08 percent. Then the second position is followed by the 51-60 year age group with a value of Rp. 101.98 trillion (9.90 percent from the age group).

In terms of gender, more men were recorded as investors than women. The number of male investors was 53.27 percent, while female investors were 40.43 percent of the total 2.28 million. Then from the income side, the most investors are those who have an income of between Rp. 10 million and Rp. 100 million. Then followed by a group of investors with an income of Rp. 100 million to Rp. 500 million.

Meanwhile, the third position came from the income group below Rp. 10 million, amounting to 12.69 percent. Meanwhile, if detailed per instrument, the stock investors totaled 2.28 million investors. Equity investors have almost doubled, or 194 percent, since 2014, to as many as 1.05 million investors.

Then, mutual fund investors also experienced an increase of almost threefold or 345 percent since 2014 to as many as 1.5 million investors. Government Securities (SBN) investors also experienced significant growth. As per October 2019, SBN investors grew 276 percent since 2014 to 304,321 investors.