The market has written and unwritten rules of the game. The goal is no dispute and each party involved can be equally satisfied.
as well as the capital market in Indonesia. Indeed, the rules of the game used in Indonesian capital markets are somewhat stricter than other markets because they involve individuals and institutions with large amounts of capital and interests. Therefore, the rules must be made in such a way that each party can comfortably interact with each other.
So how is the mechanism of stock trading in the Indonesian capital market? This is a discussion
share selling mechanism
Companies that want to raise capital by issuing shares to the public must go through a process known as Initial public offering (IPO) first. In this process The company is assisted by many parties such as accounting firms and underwriters. They must prepare and submit several documents to OJK, BEI and the Ministry of Law and Human Rights.
If all these documents are approved This indicates that the company’s stock has been officially released on the mainstream market. In the past, investors wishing to buy shares in a company that has just started an IPO had to have a stock account used by the underwriter used by the new issuer. Issued Circular OJK (SEOJK) No. 15/SEOJK.4/2020 buy IPOs This can now be done directly through the e-IPO website.
for the secondary market (a market in which an investor transacts with another investor). Investors are required to first sell their own shares through the services of a member securities company. and then forwarded to KPEI and KSEI for liquidation. and transaction guarantees
share purchase mechanism
as mentioned above To buy stocks on the main market, also known as stocks from companies that have just started their IPOs, you can use the website. e-IPOsAs for buying shares in the secondary market, the procedure is the same as selling shares in this market, which is that investors must use the service. security company members of the stock exchange to buy shares The securities company will then refer the process to KPEI and KSEI to carry out the liquidation and guarantee process.
The process of buying and selling shares can be done within 1 day. However, it takes about 2 days for the process to complete. The share is said to be officially yours if the buying and selling process is completed.
time to buy shares
Like other markets The Indonesian Stock Exchange also has business hours. IDX’s business hours are between 9:00 a.m. and 4:00 p.m. Monday-Friday. and closed on public holidays Although IDX currently uses the Jakarta Automated Trading System (JATS) computer system, whether you like it or not. There must be business hours and long holidays. Because after all, IDX is still manual labor.
IDX’s business hours are divided into two phases: a morning session (9:00 a.m. – 12:00 noon) and an afternoon session (13.00-16.00).
- before school starts. This process takes 15 minutes before the exchange opens. (8.45-8.59.01) At this stage, the securities company sends orders to the IDX so that when the exchange is opened, JATS can handle the incoming orders according to the price priority and the time priority.
- transaction process. This process takes place from 9:00 to 2:50 PM, so it is not surprising that your transactions will be immediately successful if executed at these times.
- before closing. This process starts from 2:50:00 – 2:58:00. At this time, investors and securities companies can only place orders, so if you just sold stocks through the application at these times Chances are that the sales process will only be done the next day.
- after closing. This process takes place from 3pm-3.15pm. In this process there is a sale and purchase of shares at the closing price. When a process takes place, JATS only uses queues with a time-priority system. So whoever enters the order first gets a share.
Some rules for buying and selling stocks
Here are some rules or mechanisms for buying and selling stocks you should know:
A share price fraction is a benchmark for stock price changes that can be used as a reference during negotiations. The fractional share price consists of 5 groups as follows:
- Part 1 for stocks under 200 rupiah per share
- Fraction 2 for shares priced at Rp 200-500 per share.
- Fraction 5 for shares priced at Rp 500-2000 per share.
- Fraction of 10 for shares priced at 2000-5000 per share.
- Fractional 25 for stock prices greater than 5000 per share.
Auto Reject is a stock trading mechanism that acts to reject a transaction if the price of the tradable stock hits the upper limit. (automatic rejection upper/ARA) or lower limit (Auto Rejection Low/ARB) So what are the upper and lower limits of the stock price? Here are the details:
|previous price||automatic rejection limit|
|Rp50 – Rp200||35%|
|200 Rupiah – 5000 Rupiah||25%|
This means that if the previous price was 200, the stock’s price wouldn’t be able to rise to 270 in just one day. If within a few days the stock price breaks the upper and lower limits. Stock transactions will be temporarily suspended until conditions return to normal.
Transaction fees and taxes
One thing investors need to pay attention to if they want to benefit from investing in stocks is: transaction fee and taxes, since every transaction that investors use the services of securities and stock companies is the target of taxation.
The transaction fees offered by each security company are different. but in general Transaction fees of up to 1% of all sales or purchase transactions in bulk. Securities with cheap buying and selling fees that you can use
In addition to transaction fees Investors are also subject to VAT 10% of the total transaction cost. and 0.1% income tax of the total share trading value.
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