Investors In Indonesia Research Articles

Determinants of investment satisfaction among young investors in Indonesia

Indonesian stock market is dominated by young and relatively inexperienced traders who often depend on the recommendations of influencers or bloggers in social media. This will then make them dependent and conduct frequent trading, which also means higher transaction costs that diminish their profits and increase their risks, thus decreasing investor satisfaction. Therefore, this study aimed to examine the impact of perceived investor sophistication and social media influence on investment satisfaction mediated with perceived investment return as a mediating element. The analysis focused on young investors aged 18 to 30 who have invested in shares on the Indonesian Stock Exchange for at least one year. A quantitative method was adopted using questionnaires to collect data from 344 respondents. Furthermore, data were analyzed using Structural Equation Modeling – Partial Least Square (SEM-PLS) with SMART PLS 4.0 software. The results showed that both perceived investor sophistication and investment return significantly affected investment satisfaction with beta coefficients of 0.416 and 0.358, respectively. Perceived investor sophistication also significantly influenced perceived investment return with a beta coefficient of 0.557. Additionally, social media influence significantly affected perceived investment return with a beta coefficient of 0.103. This social media influence did not directly impact investment satisfaction but through the perceived investment return, which was further found to fully mediate the impact of social media influence on investment satisfaction. Perceived investment return also partially mediated the effect of investor sophistication on Investment Satisfaction.

Evaluating Whether Indonesia Should Maintain or Revise Its Local Incorporation Requirement for Foreign Investors

The article reviews the locally incorporated company requirement for foreign investors in Indonesia. It uses a normative juridical method, focusing on examining positive law through a statute approach. It involves analyzing relevant laws, regulations, cases, and literature and includes interviews with law scholars and an official from Indonesia’s Investment Coordinating Board to gather expert opinions. The data obtained is analyzed using qualitative techniques. It discusses the advantages and disadvantages of the requirement in international foreign investment law and Indonesia concluding that its advantages outweigh the disadvantages, and some of the disadvantages have been resolved. Hence, the article argues that the requirement remains appropriate for Indonesia and should be maintained. However, certain investment treaties have weakened the requirement as a defense against legal action by locally incorporated companies in international arbitration. To overcome this problem, the country should renegotiate its bilateral investment treaties (BITs) that give the companies direct legal action rights and develop new BITs that contain balanced rights between foreign investors and Indonesia. Additionally, the locally incorporated company requirement should be reinforced by Indonesia’s negative list policy, prioritizing specific sectors for local investors.

The impact of risk factor disclosure on the initial return of IPO companies amidst a pandemic

The capital market has increasingly become a pivotal avenue for enterprises seeking additional capital for expansion or operational enhancements. In raising funds through an Initial Public Offering (IPO), the company must publish its risk disclosure in the prospectus. Therefore, this study aims to investigate the impact of risk disclosure on the initial return of Indonesian companies undergoing IPOs during the pandemic. Using data from 136 out of 164 companies that went public between 2020 and 2022, sourced from the Indonesian Stock Exchange and company websites, the study employs the ordinary least squares method to estimate the impact of risk disclosures on initial returns during the pandemic. The findings reveal that external and overall risk disclosures significantly influence IPO initial returns. Specifically, Indonesian investors were particularly attentive to external and overall risks when evaluating IPOs during the pandemic. This heightened concern suggests that comprehensive risk disclosure can affect investor behavior and financial outcomes for companies going public in uncertain times, highlighting the importance of transparency in risk communication to support investor decision-making and market stability.

The Role of Social Cognitive Perspective on Investment Intentions in Sharia Stocks in Indonesia

The majority of Indonesia's population recorded in 2024 will be Muslims, reaching 85% with a figure of 263 million out of a total population of more than 278 million people. However, the level of public investment in shares is still low, especially in sharia shares. The aim of this research is to examine the impact of attitudes, social influence, and self-confidence on Indonesian investors' intentions to invest in sharia shares. This will be achieved by exploring further with Social Cognitive Theory. This research uses a quantitative methodology which is used to collect data from a minimum sample size of 85 respondents. This research was conducted by giving questionnaires to investors who have knowledge about sharia shares in Indonesia. The expected result of this research is to increase understanding of the determining factors that influence investment intentions in sharia shares. Therefore, this research is expected to provide a significant contribution to policy makers in their efforts to increase the number of investors in Islamic stocks.

Unraveling investment herds: Bandarmology and millennial investors in Indonesia

Unraveling investment herds: Bandarmology and millennial investors in Indonesia

The Tendencies of Cryptocurrency Policies in Indonesia

Cryptocurrency has set intriguing and innovative trends in investment amidst the fluctuating global economy following government policies. This research aims to investigate the trends of policies of cryptocurrency in Indonesia, seen from the perspective of taxation and investment laws. Low tax charged in Indonesia is seen as relaxation by investors and cryptocurrency users, while the trends in legal policies concerning investment are experiencing hyper regulations in legislative products set to assure investors, in comparison to those of other countries. These trends attract some attention from investors and cryptocurrency users from abroad. This research is a unique offering that will illustrate which countries are suitable and friendly for businesspeople to carry out crypto business activities. The methodology used in this study is normative research with a conceptual approach and comparative law. The research results are expected to shed light on foreign investors wishing to invest their money in cryptocurrency businesses by considering the low tax from the perspective of current taxation law in Indonesia compared to those in Canada, the United States, and Singapore. According to the details of taxation in Canada, the United States, and Singapore, it is obvious that Indonesia gives ease to foreign cryptocurrency investors in Indonesia from the aspect of taxation law. The countries compared seem to charge very high taxes for cryptocurrency users and businesses in investment cryptocurrency. This comparison gives easier access to foreign investors to invest their assets for the development of cryptocurrency businesses and companies in Indonesia by considering the amounts of taxes imposed on cryptocurrency businesses and users. Indonesia makes it easier for foreign cryptocurrency investors in Indonesia compared to Canada, the United States, and Singapore from a tax law perspective. In terms of investment regulations, Indonesia has broader laws and regulations compared to other countries, where the investment process involving cryptocurrency businesses in Indonesia receives sufficient attention from these laws and regulations.KEYWORDS: Cryptocurrency, Investment Law, Taxation Law.

Investment Knowledge in the Young Generation: A Theory of Reasoned Action Perspective

This study aims to explore the investment knowledge of students from the Faculty of Economics and Business at Universitas Negeri Makassar using the Theory of Reasoned Action framework. Basic investment knowledge is crucial for prospective investors to avoid irrational investment practices, such as gambling, following trends without analysis, falling victim to fraud, and facing significant financial losses. Adequate knowledge, experience, and business instincts are essential for analyzing which assets to invest in within the capital market. Understanding the correct methods of investing is vital to minimize the risk of losses, particularly in stock market investments. While the growth of investors in Indonesia's capital market is promising, the overall interest in investing remains relatively low compared to other countries. This study underscores the importance of enhancing investment education to better prepare young investors. By increasing their financial literacy and decision-making capabilities, we can help foster a more robust investment culture and contribute to the financial well-being of the young generation.

Exploration of Knowledge Management in Mediating Organizational Culture and Authentic Leadership on Employee Performance at PT Bareksa Investment Portal

PT Bareksa is a pioneer of integrated financial and investment marketplace services in Indonesia. Since obtaining an official license from the Financial Services Authority (OJK) in 2016, Bareksa has become a Mutual Fund Selling Agent offering mutual fund products from various trusted investment managers. With a significant market share, Bareksa is trusted by many investors in Indonesia. The purpose of this research is to identify and analyze the influence of organizational culture and authentic leadership on employee performance through knowledge management. This research uses a quantitative approach with a descriptive causality type of research. The number of respondents is 200 people. The data analysis technique used is descriptive analysis and path analysis. The results of the research show that both partially and simultaneously, organizational culture and authentic leadership through knowledge management have a significant impact on improving employee performance. Organizational culture, authentic leadership, and knowledge management are able to explain the level of influence by 67.4%, while the remaining 32.6% is influenced by other factors. Descriptively, all variables are in a very good position. The implication of this research is the need to strengthen organizational culture supported by authentic leadership and applied through knowledge management to encourage performance improvement.

Analysis of the Enforcement of the Survival Clause for Foreign Investors in Indonesia Due to the Termination of the Bilateral Investment Treaty (BIT)

Analysis of the Enforcement of the Survival Clause for Foreign Investors in Indonesia Due to the Termination of the Bilateral Investment Treaty (BIT)

Sentiment Analysis of User Reviews on Cryptocurrency Application: Evaluating the Impact of Dataset Split Scenarios Using Multinomial Naive Bayes

The surge in cryptocurrency investors in Indonesia, reaching 18.83 million by January 2024, signifies an expanding interest in this market. This research conducts a sentiment analysis of user reviews on Indodax and Tokocrypto, the premier cryptocurrency trading platforms in Indonesia. Utilizing the Multinomial Naive Bayes method, the study examines the influence of various dataset split scenarios and random states on the model's performance. The findings reveal substantial variability in the model's accuracy based on different random states and test sizes. Notably, the Positive sentiment label consistently shows high-performance metrics, while the Neutral label underperforms. These insights are invaluable for developers aiming to improve user experience and for investors seeking to make informed decisions. This research underscores the significance of sentiment analysis in understanding user interactions and enhancing the credibility of cryptocurrency investment platforms.

The nexus between financial literacy, risk perception and investment decisions: Evidence from Indonesian investors

Financial literacy is an essential factor for individuals or households in making investment decisions. However, the problem of insufficient financial literacy is still considered one of the factors limiting the creation of successful investments, especially in relation to risk perception. Some investors have financial losses due to their limited financial literacy, making inefficient investment decisions and implicating high-risk investment choices. Hence, this study aims to explore the interconnection between financial literacy, risk perception and investment decisions. Moderated regression analysis was used for 233 investors in Indonesia who completed financial management training. The results showed that financial literacy has a positive and significant impact on investment decisions, which means that it could be used to improve the quality of investment decisions. On the other hand, risk perception as a moderating variable weakened the impact of financial literacy on investment decisions; this confirmed the consistent results before and after financial training. Overall, financial literacy across three dimensions (knowledge, skills, and attitude) plays an important role in investors allocating more funds to investment instruments than respondent groups with lower financial literacy levels. In addition, the level of financial literacy also influences the choice of investment product.

Investment Factors in Bitcoin based on UTAUT: Indonesian Investor

Bitcoin gained significant popularity starting in 2017, when the price soared from around $1.000 at the beginning year to nearly $20.000 in December. The aim of this research to analyze the factors of investment in bitcoin in Indonesia. The population of the study is individual who invest in Bitcoin. The sample is purposive with 140 valid respondents from social media bitcoin group. The research used quantitative with online survey, distributed during September to November 2022. This study found that the facilitating conditions, compatibility, trust, power prestige, and retention time positively influence the investing intention in Bitcoin. Awareness does not have significant effect on investment intention. Gender does not moderate the facilitating conditions, awareness, compatibility, trust, power prestige, and retention time with intention to invest in Bitcoin. This study concludes that investors prefer Bitcoin due to facilitating conditions, compatibility, trust, power prestige and retention time. It implies that the provider should pay attention more on facilitating conditions, compatibility, and retention time of the Bitcoin investment in their platform

Do Muslim Investors Consider Sharia literacy in Their Behavior When Trading Stocks? Experiences of Indonesian Stock Investors

The purpose of this study is to explain how the economic behavior of the Indonesian Muslim community in stock transactions influenced by their understanding of sharia. This research uses the Theory of Planned Behavior with exogenous variables being attitude, subjective norm, and perceived behavior control as predictors of intention as the endogenous variable. The ethical domain in this study is indicated by the presence of sharia literacy as a consideration in economic behavior. This research uses a quantitative approach with primary data obtained by distributing questionnaires to respondents who are sharia stock investors in Indonesia. The number of valid questionnaires amounted to 499. The data were processed using Partial Least Squares (PLS) with SmartPLS software. The results of this study show that each of the variables of attitude, subjective norm, and perceived behavior control has a significant positive effect on the intention to invest in sharia stocks. Sharia literacy is proven to moderate the influence of attitude on behavioral intention, but this does not occur in the variables of subjective norm and perceived behavior control.

Insights into Herding Behavior in Indonesian Islamic Banks

Objective—This study investigates the phenomenon of herding behavior among investors in Indonesia's Shariah banks. In this situation, market participants tend to follow prevailing market trends without engaging in comprehensive fundamental analysis. Methodology/Technique – Specifically, the research examines the influence of investors' religious understanding as a mediating variable on their decision-making processes within the Shariah financial sector. Notably, the study addresses whether investors are more inclined to mimic market movements or rely on independent analysis when investing in Sharia-compliant banks. It is commonly observed that rumors can precipitate rash trading decisions among investors, leading to the buying or selling of shares even in the absence of substantial changes in asset fundamentals (Bommel, 2003). Findings – Employing a quantitative approach, this study utilizes path analysis to explore the impact of religious understanding on herding behavior. Although prior research has extensively investigated herding behavior, the introduction of religious understanding as a mediating variable offers a new dimension to assess the correlation between religiosity and market behavior. This aspect has not been widely examined in previous segmentations. The sample comprises data from 15 Islamic Banks in Indonesia, analyzed using associative data analysis techniques with AMOS software. Findings indicate significant positive relationships between stock returns and herding behavior, trading volume and herding behavior, and the level of Islamic understanding and herding behavior in these banks. Novelty – However, these relationships do not hold when Islamic understanding is applied as a mediating variable. This suggests that the level of religious understanding acts as a direct influencer rather than a mediator in herding behavior among investors in Indonesian Islamic banks. Type of Paper: Empirical JEL Classification: G41, D81, C58. Keywords: Herding behavior, Stock returns, Trading volume, Level of Understanding of Islam Reference to this paper should be made as follows: Kamaludin; Usman, B; Susanti, W. (2024). Insights into Herding Behavior in Indonesian Islamic Banks, J. Fin. Bank. Review, 9(1), 27 – 37. https://doi.org/10.35609/jfbr.2024.9.1(1)

OVERCONFIDENCE BIAS IN INVESTMENT DECISIONS ON INDONESIAN STOCK MARKET

The investor’s growth on the Indonesian Stock Exchange for the period 2020 to January 2023 is quite significant. However, this growth was accompanied by a tendency towards overconfident bias. This behavior’s increase errors in investment decision making: increasing risk and reducing returns. The aim of this research is to verify the relationship between neuroticism, conscientiousness, and openness traits on the overconfidence behavioral bias to stock investors using The Big Five Personality approach. The research uses primary data on stock investors in Indonesia with total 483 respondent. Data analysis method used the SEM-PLS version 4.0. The research results prove that neuroticism and conscientiousness traits have a positive effect on overconfidence bias. Other evidence shows, that openness has a negative effect on overconfidence bias. This evidence applies to both male and female investors.

The Use Of Mediation As An Alternative Dispute Resolution In The Settlement Of Investment Disputes

Investment or investment has a very important function regarding will improve the development of the state of the country's economy. This investment is an activity carried out by the business world in order to improve people's living standards. The purpose of this study is to determine how the forms of dispute resolution in domestic investment according to Law No. 25 of 2007 and how the obligations and responsibilities of investors. By using normative juridical research methods concluded: the form of domestic investment dispute resolution according to Article 32 of Law No. 25 of 2007 is through deliberation and consensus; arbitration, Alternative Dispute Resolution, courts, and especially between disputes between governments and foreign investment, disputes are resolved through international arbitration that has been agreed. According to Article 15 of Law Number 25 of 2007, the obligation of investors in Indonesia is to apply the principles of good corporate governance, carry out corporate social responsibility (corporate social responsibility)while the responsibility of investors is regulated in Article 16, namely: ensuring the availability of capital from sources that do not conflict with the provisions of laws and regulations; to bear and settle any liability for losses if the investor ceases or abandons or abandons business activities unilaterally in accordance with the provisions of applicable laws and regulations; to create a healthy competitive business and to prevent practices. Investment mediation is the right choice because mediation is the spirit of local Indonesian stakeholders in resolving disputes and currently the international community is applying it as evidenced by ICSID offering wide access to mediation with countries, State entities or REIOS related to investment.

REVISITING THE DYNAMIC CONNECTEDNESS, SPILLOVER AND HEDGING OPPORTUNITIES AMONG CRYPTOCURRENCY, COMMODITIES, AND ISLAMIC STOCK MARKETS

The study investigates the dynamic interconnections and opportunities for hedging among cryptocurrency, commodity, and Islamic stock markets using DCC-GARCH and Spillover connectedness models. Using daily data covering the Russia-Ukraine war and COVID-19 outbreak from December 1, 2019 to April 15, 2022, we document weak and frequently negative correlation between Bitcoin and Islamic stock markets. Thus, Bitcoin could be viewed as a haven from Islamic stock market losses. The results also indicate that Bitcoin's diversification benefits are normally steady and increase considerably during turbulence. Furthermore, the net return spillovers from the Bitcoin market remain above zero during most of the study period. We also find that utilizing Bitcoin as a hedge during the COVID-19 pandemic phase leads to higher expenses. The outcomes of this investigation are expected to carry substantial ramifications for Indonesian investors and portfolio managers who adhere to Shariah law since they will enable them to comprehend the advantages of diversifying portfolios across various periods of stock holding or investment horizons.

Legal Review of the Authority of Financial Services Authorities in Crime Practicesinsider Trading in Capital Markets in the Development of Information Technology

The practice of insider trading constitutes a violation or crime within the Indonesian capital market, necessitating a legal role to safeguard investors against frequent violations in the market. This research delves into the legal role in addressing insider trading practices within the Indonesian capital market. The objectives include identifying the characteristics of insider trading in the Indonesian capital market and discerning the legal responsibilities associated with such practices. The research addresses the following issues: First, the characteristics of insider trading in the Indonesian capital market; and second, legal responsibilities concerning insider trading practices in the Indonesian capital market. This study employs a deductive-analytic juridical-normative approach. The analysis reveals that, firstly, the provisions on insider trading in capital markets law have not effectively ensured maximum protection for investors in Indonesia. Secondly, there are hindrances to offering comprehensive legal protection to investors in light of insider trading practices within the capital market.

Pengaruh Self Atribution Bias, Mental Accounting, Familiarity Bias, Terhadap Pengambilan Keputusan Investasi (Studi kasus, Mahasiswa FEB UDINUS SEMARANG)

Abstract.
 This study aims to examine the influence of Influence, Mental Accounting, Familiarity Bias, Self Attribution Bias on Investment Decision Making by providing evidence of an increasing number of investors in the capital market, especially among students. This research was conducted by Udinus Semarang using a questionnaire instrument that was processed using Regression Analysis, to Hypothesis Test. The results showed the influence of Mental Accounting, Familiarity Bias, Self Attribution Bias on Investment Decision Making shown by the increase or increase in the number of investors in Indonesia, especially in the young investor or student category 
 Keywords: Mental Accounting, Familiarity Bias, Self Attribution Bias, and Investment Decision Making

FAKTOR-FAKTOR YANG MEMPENGARUHI MINAT MAHASISWA UNTUK BERINVESTASI DI PASAR MODAL

Investment in the capital market can be used as an alternative to investing for people who want to invest their money and contribute for economic growth in a country. However, the number of investors in Indonesia in quantity is still far from the population in Indonesia. This study aims to analyze the factors that influence the interest in investing in the capital market. This research was located at the Faculty of Economics and Business, Udayana University with students of 2018-2019 who had attended the capital market theory course as a population. The sampling technique used was purposive sampling and the sample obtained was 233 respondents with a data analysis technique, namely multiple linear regression analysis. The results of this study indicate that investment knowledge, motivation, family environment and financial literacy have a positive effect on investment interest in the Capital Market.