Protect Investors, Routine Stock Exchange Give Notifications In Case Of Issues

Photo: Doc. Antara

JAKARTA - The Indonesia Stock Exchange (IDX) regularly provides notifications regarding the existence of problematic stocks in an effort to provide protection to investors in the capital market.

IDX Development Director Jeffrey Hendrik said his party routinely monitors the movement of each transaction, followed up by providing signs or warnings to investors through the unusual market activity or UMA.

"People should know as stock investors whether they are protected or not," said Hendrik in the Leading Indonesian Financial Literacy (Like It) webinar by OJK which was monitored online, quoted by Antara, Thursday.

He continued that his party would provide special notifications regarding companies that were late in submitting financial reports, as well as companies indicated to be bankrupt.

He mentioned a total of 14teen special notifications regarding shares and companies listed on the IDX to protect investors. He said the IDX through the SIPF (Securities Investor Protection Fund) would also provide compensation if investor assets were misused by the company.

On this occasion, he asked investors to understand potential profits, growth prospects, and risks before selecting certain shares or companies. After that, investors must also periodically monitor the performance of the shares and companies where they place their funds.

"Continuate the development of the report, continue to monitor the prospects for business, monitor the existing news, monitor it through the IDX website, monitor it through reliable sources," said Hendrik.

He explained that the choice of stock investment on the IDX is very diverse, so it can be adjusted to the needs and interests of investors. He said there are 40 indexes that can be used as a reference for investors in choosing shares and companies.

He gave an example that there are Islamic stock index groups, stock index groups with good dividend books, stock index groups with good growth, and environmentally friendly stock indexes.

"So there are many choices, many variations, but we have to remember and know how to manage risk and potential profits, so that we can get optimal profits," said Hendrik.

He explained that Indonesia's capital market experienced significant growth by reaching 40.4 percent in the last five years. He said Indonesia's capital market experienced consistent growth in terms of transaction value, transaction frequency, transaction volume to growth in the price of the Composite Stock Price Index (JCI).

"This is an encouraging number with enormous potential that we can take in the Indonesian capital market," said Hendrik.

Hendrik said that currently, there are 809 companies that have listed their shares on the IDX which makes it the highest-growing securities exchange in ASEAN over the last five years.