Chaotic! New Investors Tend To Be Fooled By Old Investors In The Stock Market, Observer: This Is OJK's Homework

JAKARTA – The increasing number of investors in the capital market in the last few years has become an undeniable fact as well as bringing fresh air to increase financial literacy in Indonesian society.

However, economic observer from PT Samudera Indonesia As'ad Mahdi assessed, there is a unique phenomenon that has occurred in the capital market recently. He said that this condition occurred because of the different approach between new investors and existing investors who had been on the stock exchange floor for a long time.

"Keep in mind, when there are people who feel safe then we have to protect their feelings. Now, there is a tendency for new investors to start working with older people or stock investors," he said in a virtual discussion held by the University of Indonesia Alumni Association (Iluni UI) on Monday, July 11.

According to As'ad, he found this situation due to being an active investor in stock trading. In fact, he admitted that he had participated in a petition for investors seeking justice because they felt disadvantaged in their activities in the capital market.

"Things like this are a logical consequence that people experience because they don't really understand, so they are suspected of being tricked into buying stocks with strange fundamentals and getting trapped," he said.

"Even I myself have been affected and lost quite a lot in stocks," he continued.

Therefore, As'ad encourages the active role of the Financial Services Authority (OJK) to provide education to the public so that all parties can understand the benefits and risks of being a capital market investor.

"The OJK's homework (homework) is still here," he said.

Citing a broadcast released by the Financial Services Authority, it was stated that so far the number of capital market investors has reached more than 9 million investors. That number has increased 8-fold in the last five years from the previous 1.2 million investors in 2017.