Investors In Indonesia Research Articles

Optimal Portfolio Formation Using Single Index Model on the IDX80 Index for the Period February 2021 – May 2022

The policy of the Central Bank of the United States (US), namely the Fed, in raising its benchmark interest rate, has increased the risk of volatility in global markets and triggered negative sentiment for foreign investors in Indonesia. Foreign investors began to relinquish their ownership up to Rp 3.19 trillion. This caused the risk of falling prices. Therefore, investors need to diversify through the formation of an optimal portfolio to minimize risk and maximize return. This study aims to analyze the formation of the optimal portfolio on the IDX80 index for the period February 2021 - May 2022. This type of research is descriptive using quantitative methods. The sample of this research used a purposive sampling technique. This study uses secondary data with data collection methods, namely documentation and literature study. The data analysis method in this study is a single index model. The results showed that of the 53 stock samples, there were 19 optimal stocks. The expected return portfolio level is 0.20% in one day, while the portfolio risk level is 0.05%.

Implementation of Magic Formula and Acquirer’s Multiple Stock Investment Strategy in The Indonesia Stock Exchange

The Indonesia Capital Market has experienced a significant increase in investors from 2019 until now. The increase in the number of new Indonesian capital market investors is dominated by people under 30 years who prefer to invest in stocks and mutual funds. This increase in new investors does not follow by high financial literacy. Research regarding financial literacy and investment return in Indonesia showed that financial literacy affects investment return. Therefore, Indonesia’s new investors will most likely experience losses due to their lack of financial literacy. Even though there are equity funds for novice stock investors that help them minimize the error they would make if they invest themselves, they cannot choose the equity funds randomly since most equity funds cannot beat the market benchmark. This study proposed using the Magic Formula and Acquirer’s Multiple as an investment strategy for new investors in Indonesia. Both Magic Formula and Acquirer’s Multiple generated an average annual return greater than the market and Indonesia Equity Funds listed since 2016 with an average return of 26,24% and 26,32% annually. The Sharpe ratio of both methods also generated a higher ratio than the market, where Magic Formula generated an average Sharpe ratio of 0,930 annually, while Acquirer’s Multiple generated an average ratio of 1,038. The acquirer’s Multiple is recommended for novice investors because it outperforms the Magic Formula and the market in terms of actual annual returns and risk-adjusted returns.

The Recap of Indonesia G20 Presidency in Bali

An international forum is a group discussion panel that helps world leaders exchange ideas and thoughts, which will later impact a country's economic and political policies or several countries. In November 2022, there were at least two important international meetings. First, the COP27 meeting in Cairo, Egypt, on 10 November 2022, and G20 Bali Summit. Indonesia had gone through a long steep road until it could finally reach a mutual agreement at the G20 Presidency in Bali, prioritizing health, digital transformation, and energy transition. However, the meeting of the head of the G20 member state was overshadowed by a global crisis. In the closing ceremony of the Indonesia G20 Presidency, Indonesian President Joko Widodo expressed his delight that the G20 Bali Leaders' Declaration had been well adopted and approved. G20 Bali Leaders' Declaration resulted from the series of G20 Indonesian presidency activities. It strived to provide various best solutions for one year of leadership amid various crises and new challenges. The effect of the high-level conference or the G20 Presidency in Bali in November 2022 was surging demand for investors all around the globe. Economic uncertainty in 2023 led to the government's decision to raise funds from investors. Since the end of 2022, Jokowi repeatedly brought up the importance of investors in Indonesia to face the threat of recession in 2023. Jokowi expected that the investment climate in Indonesia would be made easier.

Disagreement on social media and stock trading volume: The Indonesian context

This research intends to test the relationship between disagreements on social media and stock trading volume using the Indonesia Stock Exchange (IDX) as a research object. The Covid-19 pandemic has made the use massively of social media to invest in Indonesia’s capital market There has been an increasing number of investors in the IDX. They trade and discuss stocks online. The research question is whether the information on social media has worhted for Indonesian investors. Research on the relationship between social media features and stock market features, especially using trading volume, has never been done in Indonesia. To do this, we tested the influence that the number of posts and disagreements on Telegram social media has on stock trading volume in IDX. The test was done using multivariate regression method. The results show that discussions on social media have a positive and significant effect on stock trading volume, while disagreements do not significantly affect it.

The Role of Indonesian Investors in Achieving SDGs Through Green Bonds

With the ambition to achieve the Sustainable Development Goals (SDGs) agenda in 2030, many countries are increasing the implementation of green financing through green bonds. The question is, how appealing are green bonds for investors? This question is relevant as green bonds have been applied in some countries to help them to achieve sustainable development goals as part of sustainable finance. This paper compares the green bond yield, and conventional bonds yield to see if there is a significant difference between them. This becomes important as the environmental aspect is not the only consideration for investors in choosing green bonds. However, they also pay attention to the return value. The analysis was carried out on the performance of green bonds against conventional bonds in Indonesia from 2018 to 2021 and compared green bonds’ yields with conventional bond yields with an independent sample t-test. The results show that Indonesian green bonds have an increased performance every year and green bond yields have no significant difference from conventional bond yields, where green bonds have slightly higher yields.

The Effect of COVID-19, Commodity Prices, and Exchange Rate on Indonesian Stock Market

The purpose of this study is to examine the impact of COVID-19, exchange rate, and commodity prices on the performance of stock markets, focusing on the Arbitrage Pricing Theory (APT) and behavioral influence of the sentiment due to COVID-19. To accomplish this, search volumes compiled by Google Trends on the topic of COVID-19 were used as a proxy for COVID-19 sentiment. The results from applying a panel data approach, using a data set of 35 stocks listed LQ45 index, for the period January 1, 2020, to December 31, 2021, showed that COVID-19 cases and exchange rate have a negative effect on the stock markets. Conversely, commodity prices positively affect the stock markets. However, the estimation fails to reflect the significant impact of the COVID-19 sentiment on stock markets, but it has a positive effect on stock markets. This result implies that (1) higher COVID-19 cases are still a source of weakness in the Indonesian stock market, (2) Positive sentiment suggests that Indonesian investors are more optimistic throughout the pandemic period.

Determinants of Stock Investment Decision Making: A Study on Investors in Indonesia

Determinants of Stock Investment Decision Making: A Study on Investors in Indonesia

The The Effect of Rational and Irrational Sentiments of Individual and Institutional Investors on Indonesia Stock Market

The study's goal is to explore the relationship between investor sentiment, stock return, and volatility in Indonesian markets, with a focus on the Indonesia Stock Exchange (IDX). This research looked at the Indonesia Stock Exchange's (IDX) monthly statistics on stock trading volume from January 2015 to January 2021 to infer the attitudes of both institutional and retail investors. The analysis also uses a variety of well-known and accepted factors from the literature on asset pricing, such as the Covid-19 index, a reliable indicator of Indonesia's underlying market conditions. Error Correction Model was used to analyze a regression between investor sentiment and fundamentals in the Indonesian stock market in order to determine the impact of macroeconomic and Covid-19 risk variables on sentiment (ECM). Next, it looked at how unexpected shifts in Indonesian investor sentiment affected stock returns and IDX volatility with the help of Impulse response functions (IRFs) derived from a Vector Error Correction Model (VECM) model. Individual and institutional investors' stock market returns and IDX volatility were found to be affected more by rational than by irrational attitudes, according to the empirical findings. Keywords: investor sentiment, IDX, stock returns, volatility, VECM

The Impact of Bitcoin Halving Day on Stock Market in Indonesia

This study aims to determine the impact of the bitcoin halving day phenomenon that occurred on May 11, 2020, on abnormal return and trading volume activity on listed firms of index LQ45 on the Indonesia Stock Exchange. At the bitcoin halving day, there was a jump in the price of bitcoin and other cryptocurrencies. Based on the event theory, the researcher wanted to find out whether capital market investors in Indonesia tend to switch investment instruments to the cryptocurrency market with this phenomenon. These data were taken weekly for four weeks before the halving and four weeks after the 5-month halving. Using the Paired sample T-test to determine whether there is a difference in abnormal return and trading volume. The results showed that there was a significant difference between stock price’s abnormal return and trading volume before the halving day and after the bitcoin halving day. The abnormal return did not increase, but the trading volume decreased, which is thought to be due to the halving day

Factors Influencing Participation in Capital Market: A Study of Generation Z Participation in Bandung City

In the recent years, the number of investors in Indonesia has increased significantly. New investors were dominated by generation z that is considered digital-savvy and actively using the internet in daily activity. There is a huge gap between the number of investors and the total population in Indonesia. This gap can be seen as an opportunity for the Indonesian capital market to grow. One of the ways to achieve the developed and growing capital market is by increasing investor participation. Especially generation z as they have the largest portion of Indonesian population. This research aims to examine the influence of financial literacy and information technology on capital market participation of generation z. This research involved 412 generation z that domicile in Bandung City. The researcher employs descriptive statistics and logistic regression to analyse the data. The result finding shows that financial literacy and information technology have significant influence on generation z participation in capital market. This research suggest that perceived of usefulness, perceived ease of use, and perceived trust are essentials for information technology in the capital market. Therefore, it is crucial to enhance the financial literacy of generation z and support the development of information technology in the capital market to provide an effective, easy to use, and trustworthy application

Stock Price Determinants: A Literature Study

The increasing number of investors in Indonesia continues to drive investors' interest in the financial performance of their firms. Financial performance is essential to consider because it is one of the factors that influence stock prices. Both investors and businesses must conduct stock price analysis. This research is a review of the literature that analyzes the determinants of stock prices in research conducted between 2020 and 2021. The method of analysis used in this study is descriptive. Five SINTA-accredited periodicals serve as data sources for study. According to the analysis, several researchers employed a variety of samples, with the variable ROE, ROA, and DER being the most commonly used.

DO ISLAMIC CRYPTOCURRENCIES PROVIDE DIVERSIFICATION OPPORTUNITIES TO INDONESIAN ISLAMIC INVESTORS?

This study examines whether Islamic gold-backed cryptocurrencies (Onegram and X8X) provide any diversification benefits to the Islamic investors of Indonesia. We study the co-movements between return and volatility of cryptocurrencies and Indonesian Islamic equity indices during the pre-COVID-19 and COVID-19 periods. We employ Multivariate Generalized Autoregressive Conditional Heteroscedastic-Dynamic Conditional Correlation (M-GARCH-DCC) and Continuous Wavelet Transforms (CWT) for this study. We find that the COVID-19 crisis enhanced the spillover effect among the Islamic gold-backed cryptocurrencies and Islamic equities. We also provide evidence that Indonesian investors may invest in cryptocurrencies to minimize the equity sector risks during the pandemic. Our results bear significant implications for portfolio diversification strategies for Indonesian investors.

Kajian Potensi Dan Resiko Keberadaaan Mata Uang Kripto Terhadap Perilaku Investor di Indonesia

The development of financial technology is currently so rapid, so that the process of financial transactions carried out by individual users or groups becomes faster. In a period of 10 years, namely 2010-2020, investment is always synonymous with stocks and the capital market. So that investment is always associated with a person or group of people who have a large amount of wealth. Digital currency began to be widely used as a means of payment on the internet. The purpose of this currency is to provide convenience and security in payments. With the Blockchain technology in it, making transaction costs cheaper. In terms of the technology offered, cryptocurrency is a development of financial technology that allows it to replace paper money into digital money in future financial transactions. The behavior of investors in the capital market who generally make investment decisions varies from one investor to another, although sometimes the type of investment chosen is identical and has the same source of information. The purpose of this research is to analyze the potential and risks of the existence of crypto currencies on the behavior of investors in Indonesia. The method used in this study is a descriptive qualitative approach with data collection techniques through literature studies. The results of this study are expected to provide literacy and an explanation of the existence of cryptocurrencies that have potential and risks to investor behavior in Indonesia.

Pengaruh Pengetahuan Investasi, Modal Minimal, Dan Uang Saku Terhadap Minat Mahasiswa Menjadi Investor Muda

KSEI's Public Statistics data shows an increase in the SID of securities, which is dominated by young people. This study aims to determine the interest of students to become young investors. The sample collection used purposive sampling technique and produced a sample of 86 students. Questionnaire answers were processed using Smart-PLS version 3. The results of the study proved that investment knowledge, minimum capital, and pocket money had a positive effect on students' interest in becoming young investors. Research can be considered in making investment decisions as well as for universities, BEI, and interested parties as an effort to increase awareness about the importance of investment knowledge and the number of young investors in Indonesia.
 Keywords: Young Investors; Pocket Money; Interest

Challenges of Integrating Emotion into a Theoretical Framework in a Higher Education Investment Course

COVID-19 has changed many aspects of our daily life. In order to minimise the spread of the virus, social interaction was restricted, and as a result, community gatherings became less than before. The social restriction has created an opportunity in the digital economy; specifically, it has boosted the number of retail investors in Indonesia. Investment is a compulsory subject taught to business students, and the emergence of retail investors deserves special attention in our syllabus. However, fundamental theories of investment that are being taught in current education systems only focus on the cognitive aspect and theoretical framework to measure investment risk without any learning experience on the emotional part. This research argues that without emotion, the investment framework is not complete. Therefore, this research aims to evaluate the ongoing investment course at Pradita University and provide suggestions for a future class. An independent t-test is conducted to measure the perceived emotional feeling between a group of students with trading or simulation experience and the inexperienced group. The outcomes of this research could contribute to the body of knowledge to build a proper syllabus for investment courses for higher education.

Determinants of Market Discounts on Companies That Conduct Initial Public Offerings on the Indonesia Stock Exchange for the 2015-2019 Period

Indonesia is one of the developing countries with a significant increase in capital market growth based on data released by KSEI (PT Kustodian Sentral Efek Indonesia), the total capital market investors in Indonesia as of 27 December 2019 reached 2.47 million investors, this number has increased significantly from 2018 where the number of investors was 1.61 million. The purpose of this study is to analyze the factors that affect the market discount on IPO shares for the 2015-2019 period, Explain the influence of these factors on the market discount of IPO shares in the 2015-2019 period. and Analyzing the phenomenon of market discounts occurring in IPO shares in the 2015-2019 period. The variables that have a significant effect on market discount are return on assets (ROA), debt to equity ratio (DER), company age (AGE), company size (SIZE), Return on Equity (ROE), Earning per Share (EPS) and firm age (AGE) with a significance value of <0.05. Market discount occurs on shares that IPO in the 2015-2019 period. Whereas investors and issuers can take mitigation or preventive actions, but if it is advanced, problem solving can be done by taking a solution Keywords: ROA, DER, AGE, SIZE, EPS, Market Discount, IPO

Chain Reaction of Behavioral Bias and Risky Investment Decision in Indonesian Nascent Investors

Early investors possess unique sets of decision-making characteristics. They are more open to experience and eager to face risks. However, to the best of the authors’ knowledge, the discussions of nascent investors upon making the investment decision and its eroding biases were still elusive. The vital role of emotion as a bias in decision making was also inadequately addressed. This study enhanced behavioral finance knowledge by examining emotion’s role in regulating the illusion of control, overconfidence, and investors’ decision making. In total, 456 initial investors in Indonesia participated in online questionnaires, forming the data for covariance-based structural model analysis. This study found that emotion significantly increased the illusion of control, but not overconfidence or decision making, contrary to the bulk of previous studies. The illusion of control exhibited a substantial significant effect of as much as 86.4% toward overconfidence, followed by a considerable increase in decision making. The results of our study also pointed to the unique chain effects of biases affecting the decision-making process of nascent investors in the emerging market. This finding implied they possessed a unique bias mechanism in constructing their decision.

Penerapan Disgorgement Fund Sebagai Upaya Memberikan Perlindungan Bagi Investor Di Pasar Modal Indonesia

This journal discusses the implementation of the Disgorgement Fund as an effort to provide protection for investors in the Indonesian capital market as outlined in POJK No. 65/POJK.04/2020 concerning Return of Illegal Profits and Investor Loss Compensation Fund in the Capital Market Sector. The issues raised are how to implement the Disgorgement Fund itself in Indonesia and analyze the advantages and disadvantages of implementing the Disgorgement Fund in Indonesia in an effort to provide protection to investors in Indonesia. In its implementation, the Disgorgement Fund can calm investors while minimizing the crime rate in the Indonesian capital market so that the integrity of the capital market can be maintained, even though there are weaknesses such as parties subject to illegal return of profits that can harm investors and the difficulty of proving crimes in the capital market. But with the disgorgement fund system, that is effective, proportional, and preventive so that it can make a party choose not to commit a violation. Returning illegal profits as a remedial action is expected to prevent parties who commit violations from enjoying the profits they have obtained illegally, compensate for losses from victims of violations, contain corrective elements, and are expected to provide a deterrent effect.

Legal Protection Against Cryptocurrency Investors: Overview of Indonesian Consumer Protection Law

Information and communication technology advancements has spawned numerous innovations, including cryptocurrency. Cryptocurrency is a currency that only exists in Indonesia as a digital asset. The volatile and uncontrollable value of cryptocurrencies causes investors to suffer losses. This study aims to determine the legal protection of cryptocurrency investors in Indonesia under Consumer Protection Law. This study employs a descriptive qualitative methodology with a normative approach through legislation. According to the findings of this study, The Consumer Protection Act provides legal protection for cryptocurrency investors by regulating the rights and responsibilities of consumers and business actors.

Penerapan Disgorgement Fund Sebagai Upaya Memberikan Perlindungan Bagi Investor Di Pasar Modal Indonesia

This journal discusses the implementation of the Disgorgement Fund as an effort to provide protection for investors in the Indonesian capital market as outlined in POJK No. 65/POJK.04/2020 concerning Return of Illegal Profits and Investor Loss Compensation Fund in the Capital Market Sector. The issues raised are how to implement the Disgorgement Fund itself in Indonesia and analyze the advantages and disadvantages of implementing the Disgorgement Fund in Indonesia in an effort to provide protection to investors in Indonesia. In its implementation, the Disgorgement Fund can calm investors while minimizing the crime rate in the Indonesian capital market so that the integrity of the capital market can be maintained, even though there are weaknesses such as parties subject to illegal return of profits that can harm investors and the difficulty of proving crimes in the capital market. But with the disgorgement fund system, that is effective, proportional, and preventive so that it can make a party choose not to commit a violation. Returning illegal profits as a remedial action is expected to prevent parties who commit violations from enjoying the profits they have obtained illegally, compensate for losses from victims of violations, contain corrective elements, and are expected to provide a deterrent effect.