Overview
This introductory lecture explains the basics of stocks, reasons to invest or trade stocks, and practical steps for opening a stock account in Indonesia.
What Are Stocks?
- Stocks are proof of ownership in a company.
- Buying shares makes you a part-owner of that company.
How Do You Profit from Stocks?
- There are two main ways to profit: capital gain and dividends.
- Capital Gain: Profit from selling stocks at a higher price than the purchase price.
- Dividend: A portion of the company’s profits distributed to shareholders.
Why Invest in Stocks?
- Stock investing requires little capital; you can start with as little as 100,000 rupiah.
- Potential profits in stocks are much higher compared to savings or deposits (up to hundreds of percent per year).
- The Indonesian stock market is supervised by the Financial Services Authority (OJK), making it secure from fraud.
How to Start Investing in Stocks
- Open a stock account at a securities company registered with the Indonesian Stock Exchange.
- Prepare required documents: ID card (KTP), Tax ID (NPWP, optional), and savings book.
- Fill out the broker’s registration form and deposit your initial funds to the Investor Fund Account (RDI).
- After these steps, you can begin investing in stocks.
Choosing a Securities Company (Broker)
- Consider transaction fees; lower is generally better (e.g., 0.15% buy/0.25% sell).
- Check the minimum initial deposit requirement, which varies by company.
- Ensure the broker is authorized by OJK for safety.
- Evaluate the broker’s trading platform for user-friendliness and educational programs.
Key Terms & Definitions
- Stock (Share) — Proof of ownership in a company.
- Capital Gain — Profit from the increase in stock price.
- Dividend — Share of company profit paid to shareholders.
- Securities Company (Broker) — Financial firm that facilitates stock transactions.
- OJK — Indonesian Financial Services Authority, regulates and supervises the financial sector.
- Investor Fund Account (RDI) — Special bank account to hold your investment funds.
Action Items / Next Steps
- Research and choose a securities company that fits your needs.
- Prepare your documents and open a stock account.
- Follow @andysenjaya on Instagram and join the Telegram channel for regular stock market updates and educational content.
- Watch the dedicated video on dividends for more details.