Despite disruption from Bali's Mount Agung, Bali's regional OJK have said "the development of Bali's Capital Market has been positive" according to recent reports in local news wires. This means more transactions from more investors.

Transactional value from January to June of 2018 reached IDR 2.49 trillion, an increase of IDR 711 billion compared to Q4 of 2017. According to OJK, most investors in Bali invest in stocks, mutual funds and state securities (SBN) instruments and this number has increased by just over 16% when compared to December 2017.

This increase correlates to the growth in Single Investor Identification (SID) numbers. Head of the Indonesian Stock Exchange (BEI) in Bali, Agus Andiyasa told Antara News he was optimistic the number of transactions and investors would grow further the more socialization about stocks and investments was targeted to Universities.

BEI are currently working with eight Universities in Bali to establish investment galleries aimed at bringing the younger generation into the capital market investment arena. Andiyasa said this strategy is opening the doors for younger investors, including students, who have been able to buy shares on the stock exchange for as little as IDR 100,000.

This combined with Bank Indonesia's (BI) increase in the benchmark interest rate to 5.25 percent is creating more capital market opportunities. In April, Gapura Bali reported the Indonesian Stock Exchange (IDX) was actively encouraging Bali based companies, especially those involved in tourism and property, to offer IPOs because of what it sees as huge potential to obtain long-term sources of funding.

Tito Sulistio, Director of the Indonesian Stock Exchange is keen to educate people that the stock exchange is not only for large limited liability, multinational conglomerates, it is also a resource for smaller homegrown businesses. This is something BEI is tapping in to with its University Strategy as a company with an asset value of just IDR 5 billion, can also apply to make public offerings, and that paves the way for a new generation of start-ups, entrepreneurs and small to medium sized businesses to impact their local communities.

Sources: Antara News, Nusa Bali

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