Gen Z Dominates Indonesian Capital Market

An article published by CNBC Indonesia suggests Gen Z dominates Indonesian capital market investors. According to data on the number of single investor identifications (SID) recorded at the Indonesian Central Securities Depository (KSEI) on October 14, 2022, as many as 58.91-percent are investors aged 30-years and under with a total asset value of IDR 52.77-trillion.

KSEI President Director Uriep Budhi Prasetyo appreciates young people who are increasingly realizing the importance of investing, especially in the capital market.

“The domination of young people is expected to continue, so that the stability of the Indonesian capital market can last into the future,” said Uriep in an official statement, Thursday.

Uriep added that the dominance of young Indonesians in the capital market is in line with efforts to develop regulators, one of which has been an initiative by KSEI since 2019, namely opening accounts online.

As of October 14, 2022, the total number of capital market investors reached 9.87-million people, an increase of 31.85-percent compared to the previous year, which was 7.49-million. This includes 9.18-million mutual fund investors, an increase of 34.30-percent from the previous year.

The presence of mutual fund selling agents based on financial technology (Fintech) is the main factor in increasing the number of investors, this can be seen from 78.10-percent of mutual fund investors opening accounts through Fintech-based mutual fund selling agents.

As of October 14, 2022, the value of assets stored in KSEI increased by 7.22-percent from IDR 5,639.11-trillion at the end of 2021 to IDR 6,046.03-trillion, with the composition of the asset value of local investors reaching 58.75-percent. On the other hand, the value of mutual funds recorded at KSEI decreased by 3.56-percent from IDR 826.70-trillion at the end of 2021 to IDR 797.25-trillion.

Uriep also explained KSEI’s 13-strategic programs in 2023. One of KSEI’s strategic programs is the plan to develop alternative deposits of customer funds in securities sub-accounts (SRE) to facilitate transactions of equity instruments, debt securities and sukuk, or other securities listed in KSEI. This program aims to increase efficiency in storage in the settlement of transactions in the capital market, as well as to expand the network for on-boarding capital market investors.

Source: CNBC Indonesia

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