One of the most well-liked financial market stocks is Indo stock. When selecting how to raise money, the corporation may choose to issue shares. On the other hand, Indo stocks are a type of investment that many investors favor since they can offer an alluring profit level.
Shares symbolize a person’s or a party’s (business entity) financial involvement in a corporation or limited liability company. By including the capital, the party gains a claim to the company’s earnings and assets and the right to attend the general shareholders’ meeting.
Indo stock Profit
Purchasing or possessing Indo shares has two benefits for investors.
Dividends are a form of profit sharing that the firm offers and are earned from the company’s earnings. After receiving shareholder approval in the GMS, dividends are paid. An investor must retain the shares for a considerable time if he wants to receive dividends before his ownership of the shares is in the period where he is recognized as a shareholder entitled to dividends.
On the other hand, the company may distribute dividends in the form of cash dividends, where each shareholder receives a certain amount of rupiah for each share, or Indo stock dividends, where each shareholder receives several shares as a dividend, increasing the number of shares an investor owns as a result of the distribution of the Indo stock dividend.
The gain in the capital is the amount that separates the purchasing and selling prices. Indo-stock trading activity on the secondary market results in capital gains. A capital gain of Rp. 500 is received for each share sold; for instance, if an investor purchases ABC shares for Rp. Three thousand each share and subsequently sells them for Rp. 3,500 each.
Indo Stock Risk
There are few risks that are related to investment in Indo stocks:
It is the antithesis of capital gain, a circumstance in which shareholders sell shares for less money than they paid for them. For instance, the shares of PT. XYZ were purchased at IDR 2,000 per share, but the price of the shares afterward dropped to IDR 1,400 per share. The investor sells the Indo stock at Rp. 1,400, fearing it will continue to decline, incurring a loss of Rp. 600 per share.
The court declares the corporation whose shares are owned bankrupt or dissolves the company. In this case, the shareholders’ claim rights are last in line to be satisfied once all of the company’s debts have been paid (through the sale of the company’s assets). If there is any money left over after selling the company’s assets, it is distributed evenly to all shareholders. However, the shareholders would not get any money from the liquidation if there were no remaining corporate assets. The greatest danger to stockholders is due to this circumstance. Therefore, a shareholder must regularly monitor the company’s progress.
Indo stock prices change on the secondary market or during regular Indo stock trading operations as they increase or decrease. Indo-stock prices are established by the supply and demand for these shares. The performance of the firm and the sector in which it works, as well as macro factors like interest rates, inflation, and exchange rates, as well as non-economic elements like social conditions, all play a part in the supply and demand of the Indo stock. Politics, among other things.
Classification of Sector and Subsector
The “Indonesia Indo stock Exchange Industrial Classification,” or IDX-IC, will replace the current classification of the sectors and industries in which listed businesses operate as of January 25, 2021. The IDXIC releases and advice materials on this page contain more information ( click Market Data-Indo stock Indices ).
The Energy Sector includes businesses that sell goods and services associated with energy extraction, including non-renewable energy (fossil fuels), and whose income is thus directly impacted by market prices for energy commodities, such as oil mining firms, businesses that produce natural gas and coal, and businesses that offer services to the sector. Additionally, businesses in this sector sell goods and services related to alternative energy.
Raw Goods (B)
The raw goods industry includes businesses that produce chemical products, building materials, packaging, non-energy metals and minerals, wood and paper products, and other items that are used as raw materials by other industries to create completed goods.
Industry includes companies that sell products and services generally consumed by industry, not consumers. The resulting products and services are final, not products that must be reprocessed, such as raw materials. Manufacturers of machinery, electrical products, building products, aerospace goods, and defense products are included in this sector. This business also includes companies that offer professional services like personnel services and research services, as well as commercial service providers like printing, environmental management, and suppliers of industrial goods and services.
Primary Consumer Goods (D)
The primary consumer goods industry includes businesses that make or distribute goods that are normally sold to consumers, but for anti-cyclical or primary/basic goods, such as direct goods retail businesses. Supermarkets, drugstores, food manufacturers, packaged food dealers, retailers of agricultural items, cigarette makers, manufacturers of household goods, etc.
Non-Primary Consumer Goods (E)
Companies that make or distribute goods and services that are often sold to consumers but for cyclical or secondary goods are included in the secondary consumer goods industry since the demand for these items and services are closely correlated with economic growth. This sector has businesses that produce durable household goods, clothing, footwear, textile, sporting goods, hobby goods, and passenger cars and their components.
The health industry includes businesses that offer medical supplies, pharmaceutical companies, healthcare service providers, and medical equipment and supplies, manufacturers. It also includes businesses that do health-related research.
Companies that offer financial services are included in the financial industry, including banks, consumer finance institutions, venture capital firms; investment services firms, insurance corporations, and holding companies.
Property & Real Estate (H)
The Property and Real Estate Industry includes Property and Real Estate Developers and companies that provide Supporting Services
Companies that sell technology-related goods and services fall under the category of the technology industry. Examples include internet service providers that do not also offer internet connections, IT service providers and consultants, software development firms, and network equipment manufacturers, computers, electronic devices, and semiconductors.
The Infrastructure Industry includes companies that play a role in Infrastructure Development and Procurement, such as Logistics and Delivery Service Providers, Transportation Providers, Transportation Infrastructure Operators, Civil Building Construction Companies, Telecommunication Companies, and Utilities Companies.
Transportation & Logistics (K)
The transportation and logistics industry includes companies that play a role in movement and transportation activities, such as transportation providers and logistics and delivery service providers.
Listed Investment Product (Z)
Investment products that are featured include those that are listed on the Indonesia Indo Stock Exchange.
Share Listing Board
Companies may list their shares on the Indonesia Indo Stock Exchange’s Main Board, Development Board, or Acceleration Board (IDX). The prerequisites for listing shares on the Indonesia Indo Stock Exchange’s Main Board.
2. Acceleration Board
The Acceleration Board is a Listing Board that is Provided to List Shares of Issuers with Small-Scale Assets or Issuers with Medium-Scale Assets and Have Not Been Able to Meet the Requirements of the Development Board, according to Financial Services Authority Regulation Number 53/POJK.
Companies listed on the Acceleration Board will move to the Development Board or Main Board at the discretion of the Exchange when:
- Has complied with the requirements for listing on the Development Board or Main Board and;
- No longer meet the criteria for small and medium-scale asset companies, according to POJK 53.
- Equity Securities under Special Monitoring
According to rule number II-S concerning Trading of Equity Securities under Special Monitoring, Equity Securities under Special Monitoring are Equity Securities that the Exchange determines based on specific criteria.
Background and Purpose
One of the existing investor protection mechanisms in the Exchange is the imposition of suspensions and sanctions on the Listed Companies. Trading of the Listed Company’s shares that meet certain criteria is suspended until certain conditions.
This is done so that investors can have complete information and sufficient time to make their investment decisions. However, during the suspension, investors who own these shares cannot sell them on the Exchange. However, investors with a high-risk tolerance desire to purchase the shares. A mechanism is necessary to meet the needs of both parties.
Equity Securities under Special Monitoring are intended as one of the investor protection mechanisms on the Indonesia Indo Stock Exchange.
The benefit of the investment
- Improve investor protection
- Increase transparency in investing
- Accommodating the needs of a wider range of investors
For Listed Companies
- Increase Indo stock transaction liquidity
- Pay more attention to performance
- Gives more time to improve its performance before the Indo stock gets suspended
Specific Monitoring Criteria
There are several criteria that cause a share to be included in Equity Securities under Special Monitoring, namely.
- Less than Rp51.00 (fifty-one rupiah) per share on the Regular Market on average during the previous 6 (six) months;
- the most recent audited financial statements and interim financial statements do not reflect revenue or show no change in income from the financial statements that were previously presented.
- For the Listed Company, which is now engaged in the following activities: – The production operation stage of the mining of minerals and coal has been completed, but the sales stage has not yet begun, or the production operation stage has not yet begun; or
– Is a holding company that has a controlled company operating in the mining and coal sector that has finished the production operation stage but has not yet reached the sales stage or started the production operation stage as of the end of the fourth (fourth) financial year since it was listed on the Exchange (core business).
- The most recent financial accounts show negative equity;
- The company does not meet the criteria to continue being listed on the Exchange as prescribed in:
– Rule Number IV regarding Special Provisions for Listing Shares and Equity Securities, Rule Number IA regarding the Listing of Equity Securities and Shares for Listed Companies whose shares are listed on the Main Board or the Development Board, other than Shares Issued by the Listed Company. For the Listed Company whose shares are listed on the Acceleration Board, other than Shares on the Acceleration Board Issued by the Listed Company.
- Possesses poor liquidity, as indicated by an average daily share transaction volume of fewer than 10,000 shares and an average daily share transaction value of less than Rp 5,000,000.00 (five million rupiahs) for the previous 6 (six) months on the Regular Market;
- If bankruptcy or a PKPU (suspension of debt payment obligations) is requested;
- Subject to the temporary suspension of Securities trading for more than 1 (one) Exchange Day due to trading activities;
- Subject to the temporary suspension of Securities trading for more than 1 (one) Exchange Day.
- The Exchange decides other conditions after receiving consent or an order from the Financial Services Authority.
All trading provisions of equity securities under special monitoring refer to Rule Number II-S Concerning Trading of Equity Securities under Special Monitoring. Trading in Equity Securities under Special Monitoring is the same as trading in other shares, except for the provisions on Auto Rejection.
JATS will perform Auto Rejection when the offer price or buy request is more than 10% above or below the reference price.
All these steps are crucial to understanding if you are thinking of investing in the Indo stock market. Indo stock investment is beneficial to its shareholder in the long term; with strategies, you can invest in the stock market.