A Beginner’s Guide to Investing in the Indonesia Stock Exchange

Did you know that Indonesia is the 4th most populous country in the world, sitting just behind the United States? With nearly 300 million people scattered across the islands, Indonesia is an up-and-coming powerhouse with a financial sector you need to be aware of.

Educated investors know that diversification is key. You should be diversifying within your own country by investing in multiple asset classes and multiple industries. But you should also be investing abroad so your net worth isn’t tied to just one market.

Wondering how to invest in the Indonesia Stock Exchange? It’s easier than you might think. Keep reading to learn how to invest in Indonesian stocks.

Best Stocks on the IDX

The Indonesian market is one of the fastest-growing markets in the world. With a huge population and a growing middle class, Indonesia is home to a handful of companies that should be in every investor’s portfolio.

So what companies should you be aware of when trading stocks on the IDX for the first time? The banks are the first place to start.

PT Bank Central Asia Tbk (BBCA) and PT Bank Rakyat Indonesia Tbk (BBRI) are two of the biggest companies and the first to consider investing in. PT Bank Mandiri (Persero) Tbk (BMRI) isn’t far behind.

Next up is PT Telkom Indonesia Tbk (TLKM). Telkom is an Indonesia-based, multi-national telecommunications company, and the Indonesian government owns more than half of the shares. There’s also a secondary listing on the NYSE, accessible to American investors.

Unilever Indonesia Tbk (UNVR) is also high on the list as one of the country’s leading producers of consumer goods. From grocery products to cosmetics, the nation depends on Unilever.

Getting Started on the Indonesia Stock Exchange

So how can foreign investors start putting some of their wealth into the Indonesian market? First, look for options available in your home country. As mentioned earlier, Americans can purchase secondary shares of Telkom on the NYSE.

Unlike in many other nations, it’s very hard for foreign investors to open a brokerage account in Indonesia. Only those currently residing in the nation have access to IDX brokerages.

If you want to keep it simple, you can invest in mutual funds that contain Indonesian stocks. There are currently three mutual funds that track an Indonesia index, all of which are based in Europe.

For the most flexibility when investing in Indonesian stocks, however, you’ll want to check out international investing platforms. Read here to discover how you can invest in Indonesian stocks directly.

Not only can you gain access to Indonesia stocks, but you can also invest in Australia and across Asia, through one simple platform.

Investing Abroad

The Indonesia Stock Exchange is a huge opportunity for foreign investors. With such a fast-growing market and a growing middle class that’s able to spend more, the country is ripe with wealth-building opportunities.

Don’t let a lack of access prevent you from getting in on the action. With the right platform, you can invest anywhere in the world.

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