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Technology  26, Dec 2013

Only 73 member cos of IDX provide online trading facility

The financial literacy index of Indonesia terms the country’s 4% population as literate, leaving much room for potential in online trading in the archipelago

Image for representation purpose only (Courtesy: Tonis Valing / Shutterstock)

Indonesia Stock Exchange (IDX) in its report recently admitted that online trading facility is a very important factor in increasing the number of customer/traders.

However, as the report stated, not every securities company provides online trading facility. Adikin Basirun, Director of Technology & Risk Management, IDX  hopes that more companies will provide online trading facility to increase the number of customers.

“Online trading facility is a backbone in getting customers,” said Basirun was quoted as saying in Antaranews.

The report stated that of the 114 members of IDX, only 73 companies provide online trading facility. This means, there is still big room for growth in online trading in Indonesia.

“From that number only 63 have online trading, and 10 companies use direct market access (DMA),” Basirun said.

DMA is a facility provided by a broker in which trading is managed by customers without manual intervention from the “trading desk”. The facility differs from online trading in the nature of its users. Where online trading serves retail customers, DMA serves institutional customers.

Read also: How foreign investment restrictions will affect online retailers

Basirun added that currently there are eight companies in process of getting permit to operate in online trading facility.

Low financial literacy
Meanwhile, at another occasion held recently, Lily Wijaya, Coordinating Chairperson, Association of Indonesia Securities Companies (APEI), too reiterated that the awareness of securities companies in Indonesia towards online trading was very low.

She said that from the survey result of capital market industry in Indonesia, the financial literacy index of Indonesia population is far below the desired level. A huge percentage — 94 per cent — of the Indonesian population is categorised as “not literate” (in terms of understanding, belief, and skills).

“Not literate means completely unable, don’t believe, and not skilled in using financial product or services. While the literate are only four per cent. So, the big home work is how to bring the not-literate to become literate,” Wijaya said.

Wijaya concluded that there are three things to be emphasised to increase the potential of capital market services in Indonesia — understanding, confidence and skill.

Read also: Payments company Doku launches MyShortCart for merchants

Image for representation purpose only

Meisia Chandra

Meisia Chandra

An explorer and a thinker. Writes on digi-tech industry in Indonesia. Also works as a digital strategist and digital media manager in Jakarta.

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