Indonesia is a fast-growing emerging market with a population of over 270 million people and a GDP of more than $1 trillion. The country offers attractive opportunities for investors who are interested in its diverse sectors, such as consumer, infrastructure, natural resources, and technology. However, investing in Indonesia also comes with some challenges, such as political uncertainty, regulatory complexity, currency volatility, and market inefficiency. Therefore, foreign investors who want to buy Indonesian stocks and bonds need to be well-informed and prepared before entering the market.
The main venue for trading Indonesian stocks is the Indonesia Stock Exchange (IDX), which has more than 700 listed companies and a market capitalization of about $500 billion. The IDX operates two trading boards: the Main Board and the Development Board. The Main Board is for companies that meet certain criteria, such as minimum capital, profitability, and free float. The Development Board is for smaller and less established companies that have growth potential.
Foreign investors can buy Indonesian stocks through two main channels: directly or indirectly. Direct investment means opening a securities account at an Indonesian brokerage or securities firm that is…
