Jakarta (Indonesia Window) – The number of new stock investors in Indonesia has increased by 1 million Single Investor Identifications (SIDs) throughout 2021, bringing the total number of SIDs as of August 31, 2021 to around 2.7 million SIDs, according to the Indonesia Stock Exchange (IDX).

"This achievement is the highest record in history and is the result of synergy and collaboration of all stakeholders in the Indonesian capital market," said IDX’s President Director Inarno Djajadi in a statement here on Thursday (Sep. 2).

The number of new stock investors grew rapidly in just eight months in this year. The increase was recorded almost double from the previous achievement in 2020 which amounted to 590,658 new SIDs.

"Digital optimization, which began in 2019 and was maximized in 2020, followed by synergies and collaboration among all capital market stakeholders, has become the strength of investor development in 2021 and the main reason for the rapid increase in the number of new investors this year," said Inarno.

This achievement coincided with the new record for capital market SID growth.

The number of new capital market investors as of August 31, 2021 reached 2.22 million investors, an increase of almost double from last year's achievement, bringing the current total capital market investors to 6.1 million investors.

Inarno explained that the focus of the Self-Regulatory Organization (SRO), which consists of the IDX, PT Kliring Penjaminan Efek Indonesia (KPEI) and PT Kustodian Sentral Efek Indonesia (KSEI) together with the Financial Services Authority (OJK) to accelerate digital transformation in 2019 and 2020, has had a positive impact in creating a new milestone in the achievement of the Indonesian capital market.

The increase in the number of new investors was also followed by an increase in investor activity.

All indicators in August 2021 showed the increase of investor activity, one of which indicated by the average active investor per day doubled to 198,858 from 94,704 SID, and the average active investor per month increased 2.2 times to 641,442, from 293,886 SIDs.

In addition, with digital penetration, the distribution of investors has also become more even and gradually no longer concentrated in Java island.

Data from July 2021 showed that the concentration of investors in Java has decreased to 69 percent from 74 percent in 2018.

The composition of investors is also increasingly moving to young ages as around 80 percent of investors in the capital market are millennials and gen (Generation) Z.

Reporting by Indonesia Window