Many veteran investors understand the importance of diversifying their portfolios. However, these investors often use different means to diversify their assets.
Some investors venture into new stock industries, while others invest in markets like precious metals. Increasingly, many investors have also felt a pull towards foreign stock exchanges.
Investing in these foreign exchanges allows you to accumulate wealth through diverse markets. Most often, people find Asian stock exchanges to be exciting opportunities.
One such example is the Indonesian Stock Market. However, many people hesitate to invest in Indonesian stock exchanges due to their checkered performance history.
If you’re wondering about stock trading in Indonesia, keep reading! We’ll explore if the Indonesian market is a safe market for investors.
Past Performance of the Indonesian Stock Market
You may wonder why the Indonesian stock market would be a source of confusion for investors. After all, if people invest in Taiwanese assets or other Asian markets, why should Indonesia differ?
The answer is that Indonesia’s market has suffered tremendous setbacks in recent years. For example, in 2018, the country’s leading stock exchange collapsed.
We mean this in the most literal way. The exchange’s mezzanine collapsed with a group of visiting school children gathered on it. Fortunately, everyone survived the incident.
Something like this rarely inspires confidence. Many people saw the incident as a symbol of the nation’s inability to maintain a robust stock market.
The market also had unfortunate limitations. In 2019, there were only 668 listed companies whose stock was available for trading.
Is This Still the Case?
Although Indonesian stock trading suffered hard times, this trend seems to be reversing. As of January 2022, the Indonesian stock market had finished higher for three back-to-back sessions.
As a result, the market has advanced by more than 75 points. As a result, many financial experts take a more positive view of Indonesia’s current state. They expect support for the relatively new market to increase in future sessions.
Currently, it seems that the Indonesian market will continue to grow and perform well. So, if you’re interested in this market, now’s the time to start investing!
How to Get Started with Indonesian Stock Trading
Opening a securities account in Indonesia is nearly impossible for non-residents. However, you can do so if you live in Indonesia.
First, those who wish to open an account must submit a copy of their passport to the security. Next, applicants will fill out an agreement form that the broker will provide.
The broker usually charges a deposit, although the amount varies depending on your broker. Once you pay the deposit, wait for the account to receive approval. If it does, you can begin trading!
Decide if the Indonesian Stock Market is Right For You!
The Indonesian stock market is currently experiencing growth, making it an excellent time to invest. So, talk to a financial advisor to see if you can buy stocks in Indonesia! Doing so could earn a significant profit.
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