inilah.com/feb

8/9/2019 inilah.com/feb

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Ayo ! Cermati .Inilah saatnya optimis pasar-global khususnya IHSG naik hingga penutupan sore 3 feb 2010.Dominasi pasar-global internasional saat ini masih dipengaruhi kuat China di regional Asia-Asean.

Sesuai aggreement dengan indonesia terkait ACFTA.terlihat di grafik penutupan 2feb 2010 dengan sikap optimis IHSG pagi ini naik 0,82 point.INDF (grafik kemarin,statis-stabil lengan yang kosong yang sebelumnya stabil penuh),BMRI (grafik ter

isi penuh ,cenderung naik tapi tak signifikan 0,1 point),BBRI(grafik lengan penuh ,lalu lengan kosong,cenderung optimis naik dari BMRI yang cukup signifikasi ),UNTR (industri united tractor,wajib dicermati bahwa pagi ini cenderung naik cukup tinggi IHSG terangkat naik hingga sore),ASII(Astra Group,cenderung turun (lengan beban grafik banyak kosongnya) di awal pagi ini 3 feb 2010).

hal yang patut diperhitungkan ialah komoditi dari sumatra,sulawesi,kalimantan,Irian Jaya-papua,Jawa).Komoditas CPO kelapa-sawit,komoditi kakao-gula-kopi,komoditas ternak-sapi di sulawesi dengan order malaysia aggreement-otonom sulawesi,industri pertambangan di Irian Jaya-papua.

IHSG hingga penutupan optimis naik ke 0,78 point.

Aggrement UMKM/Koperasi wajib diperhitungkan untuk meningkatnya Export-Import yang pastinya mensejahterakan rakyat khususnya home-industri keterampilan.

BONDSA bond is an instrument in which the issuer (debt or borrower) promises to repayto the lender/investor the amount borrowed (principal) plus interest (coupon) over some specified period of time. The issuer may be a corporation or government. The interest is usually paid at specified intervals, such as semi-annually orquarterly. When the bond matures, the investor receives the entire amount invested, or the principal plus coupon. Once issued, bonds can be traded like any othe

r security before its mature without paying penalty which is unlike in average time deposit (ATD).

Type of Bonds traded in Indonesia Stock Exchange:1. Corporate Bonds: Bond issued by state owned company or private compa

ny.2. Government Bonds: Bond issued by the central government.3. Municipal Bond: Bond issued by province/district government for financing public utilities project.4. Retail Bonds: Bond traded in a bourse trading mechanism as applied in stock trading with relatively small nominal value.

5. Sharia Bond: Bond which has yield refers to profit sharing of the bondissuer but not relay on interest based. In term of its yield, there are two typeof calculating, as follows: Sharia Mudharabah Bond is a sharia bond with initial contract base onprofit sharing so that investor may receive income after knowing revenue of thebond issuer. Sharia Ijarah Bond is a sharia bond uses such as leasing contract sothat ijarahs fee (like a coupon) will be in fix rate and it can be known or counted from the initial issued.The different type of coupon:1. Zero Coupon Bonds: Bond which has no coupon along the period of its time maturity, but, Bond issuer will pay its principal on the maturity date.

2. Coupon Bonds: Bond which has a coupon which is able to convert in cashmoney on specified period of time according to the issuers provision.3. Fixed Coupon Bonds: Bond which has fix amount of coupon rate from the t


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ime of initial issued until maturity date. Fix coupon bond will be paid at specific period of time.4. Floating Coupon Bonds: Bond which has coupon rate that is usually keepon adjusting to the reference rate in the market, such as weighted average of interest rate of average time deposit (ATD) in the biggest government bank or private bank.5. Mixed rate bonds: Bond has a fix coupon rate only for certain period of

time (e.g. 1- 3 year) then it will be floating follow the market rate.The characteristics of Bonds:

* Nominal Value (Face Value) Bond issued by corporation, whether it is a government corporation or private corporation.

* Coupon (the Interest Rate) is the interest value occasionally received bythe bondholders (usually every 3 or 6 months). Bonds coupon is asserted in annualpercentages.

* Tenor is the date when the bondholders will receive principal payment of the bond. The maturity date of each bond varies from 365 days to more than 5 years. A bond close to maturity date has lower risk than a bond that is far from maturity. It is because a bond that close to the maturity date is easier to predict

. In general the longer the maturity dates of a bond, the higher the coupon/interest.* Issuer Company knowing the bond issuer well is an important factor in reta

ins bond investing. To measure the default risk (possibility of an issuer failedto make coupon or principal payment on the determined time), an investor shouldpay attention on the rating of each bond issued by official rating institutionsuch as PEFINDO or Kasnic Credit Rating Indonesia.

Bonds Pricing:

Different to stocks price that is expressed in currency unit (rupiah amount), bonds price is expressed in percentages (%) unit that is percentages of its nominalvalue. There are 3 (three) possibility of the bonds price offered to the market:

* Par Value Bonds price is the same as its nominal value. Example: A bond with nominal value Rp 50 million sold at price 100%, the bonds value is 100% x Rp 50million = Rp 50 million.

* At Premium Bonds price is higher than its nominal value. Example: A bond with nominal value Rp 50 million sold at price 102%, the bonds value is 102% x Rp 50 million = Rp 51 million

* At discount Bonds price is lower than its nominal value. Example: Bond withnominal value Rp 50 million sold at price 98%, the bonds value is 98% x Rp 50 million = Rp 49 million

Bond Yield :Return on bond investment will be stated as yield that is source of income for the investors who allocate their money to buy a retail bond/corporate bond/government bond. One of the important thing that is to be considered before they decide to invest in bond is the amount of bond yield as a measurement tool to know the annually rate of return.There are two terminologies in calculating yield, current yield and yield to maturity.

*Currrent yield that is yield calculated base on the amount of coupon recei

ve for one year to its bond price.

Current yield = Coupon x 100%Price


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Example:Bond issuer PT. XYZ, gives coupon rate 17% p.a. to their bond holder while bond traded at 98% with nominal value Rp 1.000.000.000, then its current yield as follows:Current Yield = Rp 170.000.000 or 17% x 100%

Rp 980.000.000 98%= 17.34%

*While a Yield to maturity (YTM) is return on investment or income will be

obtained by investors if they hold bond until its due date. Formula of YTM whichis often used by bond participant, as follows:

YTM approximation = C + R - Pn x 100%

R + P2

Explaination:C = cuponn = period of time to maturity (in year)R = redemption valueP = purchasing value

Example:Bond XYZ was bought on September, 5-2003 at 94.25% with coupon rate 16% which will be paid quarterly and its maturity date on July, 12, 2007. What is YTM approximation of Bond XYZ?C = 16%

n = 3 year, 10 month, 7 day or equal to 3.853 yearR = 94.25%P = 100%YTM approximation = 16 + 100 94.25

3.853= 100 + 94.25

2= 18.01 %

Companies have many alternatives of financing source, internal or external. Alternative internal financing generally comes from the retained earning, while external financing can come from creditors in form of debt, other forms of funding or by issuing debenture papers, and even financing by participating in stock (equity). Financing by participation mechanism is usually done by selling companys stocks to the public or often known as going public.

To go public, companies have to make internal and documents preparation in accordance to the requirements needed for going public, and fulfill all the requirements stated by the Bapepam. Public offering or go public is the activity of stockor other marketable securities offering by an issuer (going public firm) to thepublic based on the procedures arranged in the Capital Market Law and its Implementation Rules.

Public offering accommodates these activities:

* Primary Market Period, when stocks are offered to investors by underwriterthrough selected Selling Agent;


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* Shares subscriptions, the allocation of investors securities order according to the available amount of securities.

* Stock allotment at the Exchange, when stocks are traded in the Exchange.

Stocks public offering procedures can be categorized into these 4 steps:

1. Preparation Step

In this step, the company has to prepare everything needed the public offering process. First, the company, who will issue the stocks, holds Shareholder General Meeting and asks the approval from shareholders. After the approval, theissuer will appoint the underwriter, market institutions and supporting professions that consists of:

* Underwriter. Underwriter is the party who has the most involvement in assisting the issuer to go public. Underwriter has to prepare all the documents, prospectus, and giving the guarantee of the issuing process.

* Public accountant (Independent Auditor). Public accountant is responsibleto audit or check the income statement of the issuer.

* Appraisal Company for appraising the fixed assets owned by company and acc

ounting proper value of the fixed assets.* Law consultant for giving legal opinion.* Notary for making amendments of the companys basic budget and various agree

ment underlying the public offering, and notes of meeting.

2. Registration-Statement Submitting StepIn this step, the company will complete the registration by giving support

ing documentations to the Bapepam until the Bapepam states that the RegistrationStatement is effective.3. Shares Offering

In this step, the issuer offers its stock to the investors society. Investors can buy the shares through their appointed selling agents. Offering period isusually about three trading days. Worth to notice, that not all of the investor

s desires are fulfilled in this level. For instance, 100 million shares are released in the market, while the amount of shares that the investors want to buy is150 million shares. If the investors could not get the shares at the primary market, they can buy it in secondary market after the stock is listed in exchange.

4. Shares Listing in the ExchangeAfter selling the shares in primary market, the stocks are listed in the E

xchange. In Indonesia, the stocks could be listed in the Indonesia Stock Exchange (IDX), Surabaya Stock Exchange, or even in both exchanges.

Stock listed in the Indonesia Stock Exchange is classified into 2 listing boards: Main Board and Development Board. The placement of the Issuer and prospectiveIssuers Listing depends on the fulfillment of the initial listing requirements oneach Board.

Main Board is intended for listed big companies that have track records, while the Development Board is intended for companies that have not yet fulfill the listing requirements of the Main Board, including prospective companies that have not produce any profits, and companies that are on the state of reorganization.

General Requirement Listing on the Jakarta Stock Exchange

Issuers can list their stocks in the Exchange if they have already fulfilled thefollowing requirements:

1.Registration statement has been stated effective by the Bapepam

2.


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The issuer is not in lawsuit that could influence the existence of the company

3.Its business field is directly or indirectly not prohibited by the prevail

ing law of Indonesia4.

Particularly for issuers in manufacturing field, they are not in pollution

problem (this is proved by the AMDAL certificate) and for issuers in forestry field must have ecolabelling certificate

5.Especially for issuer in mining field, it must have a managing license tha

t is still valid at least for 15 years; have at least 1 Mining Authority Contract or Regional Mining License; one director with technical skill and experiencein mining field; and have had a proven deposit or equivalent

6.Especially for business that needs managing license (like highway construc

tion, forestry), it must own the license at least for 15 years.7.

Subsidiary and/or holding company of a listed company in Jakarta Stock Exc

hange that contribute 50% of its consolidation income to the listed company cannot be listed in the Exchange8.

Financially related requirements of the initial listing must base on the last audited annual financial report.

Criteria of Initial Listing on the Main Board

Prospective issuers will be listed for the first time in the Main Board if theyhave fulfilled the requirements below:

No

Criteria1.

Have fulfilled general requirements for stock listing2.

Until the proposal of listing, the company has been running its operational activities in the same core business for at least 36 months in sequent3.

Have audited the last three years Financial Reports, and have received Proper Opinion Without Exception for the last 2 years audited financial report and Interim Audited Income Statement (if exists)4.

Based on the last Audited Financial Report, the company must have at least an amount of Rp 100,000,000,000 (one hundred billion rupiah) as Net TangibleAsset5.

The amount of shares owned by the minority shareholders after public offering isat least 100,000,000 (a hundred million) shares or 35% of paid up capital (depends on which one is smaller)6.

The number of shareholders is at least 1.000 (a thousand) shareholders, who alre


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ady have accounts in one of the Exchange Memberss, with the provisions below:

* For issuer that performs public offering, the number of its shareholders is the number of shareholders after the initial public offering.

* For issuer that comes from a public company, the number of its shareholders is the last number of shareholders at least 1 month before proposing the listing application.

* For issuer listed in another Bourse, the number of its shareholders is counted based on the average of the last six months.

Criteria of Initial Listing on the Development Board

No

Criteria1.

Have fulfilled general requirements for stock listing2.



Have net tangible assets of at least Rp 5,000,000,000 (five billions Rupiah)5.

If issuer experiences operating loss or does not produce any profit yet or operates less than 2 years, it is obligated to:

* achieve profit and net income on the end of the second book year based onthe financial projection announced in the Exchange.

* Especially for issuer, whose field of business needs longer time to reachbreak event point (such as infrastructures, agricultures of hard plants, ForestManaging Right concession or Industry Plan Forestry or others business field related to public services) shoul achieve profit and net income at least at the endof the sixth year since the listing

6.

The amount of shares owned by the minority shareholders after public offering offive days before the listing proposal (for public company which shares have notbeen listed) is at least 50,000,000 (fifty million) shares or 35% of paid up capital (depends on which one is smaller)7.

The number of shareholders is at least 500 (five hundred) shareholders, who already have accounts in one of the Exchange Members, with the provisions below:

*For issuer that performs public offering, the number of its shareholders i

s the number of shareholders after the initial public offering*

For issuer that comes from a public company, the number of its shareholders is the last number of shareholders at least 1 month before proposing the listing application


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*For issuer listed in another Bourse, the number of its shareholders is cou

nted based on the average of the last six months

8.

Especially for issuer who is going tohold an IPO, the Underwriter has to use the

principle of full

Before making transaction, the investor must become a customer of one security company or brokerage office. There are about 120 securities companies listed as the Exchange Members in the Jakarta Stock Exchange.

The opening document of the account encompasses complete customers identity (including investment targets and financial condition) and also some information regarding the kind of investment the customer will make.

The customers or investors could make selling or buying order after they have been approved as a customer in a security company. Every security company usually

requires its customers to deposit a certain amount of money as a guarantee to dothe transaction. The amounts of the deposit are various; for example, some security companies require their customers to deposit Rp 25 million as the guranteefund while others ask for Rp 15 million, and so on.

Principally, there is no minimum limit of the amount of fund used to buy the shares. In stock trading, the amount of shares traded uses a trading unit called aslot. In the Jakarta Stock Exchange, one lot means 500 shares and that is the minimum limit of buying shares. The fund needed to buy them is various because thestock prices listed in exchange are also various. For instance, stock price ofXYZ is Rp 1,000, so the minimum fund needed to buy a lot of share is Rp 500,000(500 multiplied by Rp 1,000). Another illustration, if ABCs stock price per shareis Rp 2,500, the minimum fund to buy the shares is Rp 1,250,000 (500 multiplied

by Rp 2,500).

In the Jakarta Stock Exchange, transactions are held on certain days called as the Exchange Days/Trading Day.

Exchange Day

Trading Session

Time

Monday to Thursday

Session I

Session II


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09.30 AM-12.00 PM

13.30 PM-16.00 PM

Friday

Session I

Session II

09.30 AM-11.30 PM

14.00 PM-16.00 PM

Seen from the process, the sequence of share trading or other securities can beexplained as follow:

1. Become a customer in a Security CompanyIn this part, someone who wants to invest must become a customer or open a

n account in one Security Company. After officially registered as a customer, the investor can start making transactions

2. Order from customer.The activity of buying and selling shares is started with the instruction

given by the investor to the broker. The order can be done directly, in which the investor come straightly to the brokerage company, or through means of telecommunication such as the telephone.

3. Order is sent to a Floor TraderEvery order that comes to the broker in the brokerage company will be sent

to the broker on the Trading Floor known as the Floor Trader.4. Order is entered into the JATS

Floor Trader will then make an entry of every order they received in the JATS computer. There are hundreds of JATS terminal in the Trading Floor to put inthe customers orders. The orders in the JATS system will be monitored by the floor traders, brokers in the brokerage office and the investors. There should be acommunication in this step between the brokers and the investors so that the buying and selling orders made by the investors can be carried out well. It is inthis step also that the Floor Trader can do some changes in the order, such as changing the offering price.

5. Transaction is matchedIn this step, the orders entered in the JATS system will be matched with t

he suitable price, and then will be registered in the JATS system as a done tran


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saction, which means that the buying or selling order has find the right price.The Floor Traders or the traders in the brokerage office will then inform the investors that their orders have been fulfilled.

6. Transaction settlementThe last step of the transaction process is the transaction settlement. In

this step, the investors cannot automatically receive their rights because theyfirst have to go through several process such as clearing, transfer account, an

d so on until the investors rights is fulfilled. The investor that sells will receive the money, and the investor that buys will receive his/her shares.

At the JSX, the settlement process takes 3 trading days. It means that ifthe transaction happens today (T), the rights will be received on the next threedays, or known as T + 3.

Stock price index is an indicator that shows the movement of the stock prices. Index is used as an indicator of market trend; it means that index movement describes market condition at one moment, whether it is active or dull.

Through the index, we can know the stock price movement trend today, is it incre

asing, steady, or declining. For example, if at the beginning of the month, theindex is 300 and at the end of the month becomes 360, we can say that the average stock price experiences an increase of 20%.

Index movement becomes an important indicator for investors to determine if theywould sell, hold, or buy one or several stocks. Because stock prices move everysecond and minute, index value will move ups and downs very rapidly as well.

There are 6 (six) types of indexes in the Jakarta Stock Exchange:

1. Individual index, the index that uses the price of each stock as its basicprice, or index of each share listed in the JSX.2. Sector Stock Price Index, the index that uses all stocks that included in

each sector, such as finance, mining, etc. In the JSX, sector index is divided into 9 sectors: agriculture, mining, basic industry, miscellaneous industry, consumption, property, infrastructure, finance, trades and services, and manufacture.

3. Jakarta Composite Index, the index that uses all listed shares as the indexs component.

4. LQ 45 Index, the index that consists of 45 chosen stocks by considering 2variables: trading liquidity and market capitalization. There are new stocks listed in the LQ 45 index every 6 months.

5. Jakarta Islamic Index (JII). JII is an index consists of 30 stocks that accommodate the Islamic Canon Law investment or an index that is based on IslamicLaw. In other words, this index includes stocks theat fulfill the criteria of investment in Islamic Law. The stocks included in this index are stocks issued byissuers that run their business activities not in contrast with the Islamic Law,such as:

o Gambling business and any games that include gambling or prohibitedtrading.

o Conventional financial institution, including conventional banking and insurance.

o Businesses that produce, distribute, and trade food or drink that are prohibited by Islamic Law.

o Businesses that produce, distribute, and/or provide products and services that destroy morality and harmful.

6.

Main Board and Development Board Indices. Stock price indices that specifi


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cally based on group of stocks listed in JSX, Main Board Group and Development Board Group.

Mutual Fund is an investment alternative for investors, especially for small investors and those who have less time and skill to count the risks of their investments. Mutual Fund is designed as tool to gather fund from public that have thecapital, will to invest, but only have limited time and knowledge. Beside that,

through Mutual Fund, it is expected that the number of local investors in the Indonesias Capital Market can increase.

Generally, Mutual Fund is defined as a mean to collect fund from the investmentsociety to be invested in portfolios by the fund manager. This definition is also written in the Capital Market Law No.8/1995 section 1 clause (27) regarding Mutual Fund. There are three points shown on this statement. First, Mutual Fund collects fund from the society. Second, the fund is then invested in the securities portfolio. Third, the fund is managed by an Investment manager.

Therefore, the fund put in the Mutual Fund is investors collective fund, and theInvestment Manager is the person trusted to manage the fund.

Benefits of investing in mutual fund are:First, investors with smaller budget can do investment diversification in theirsecurities to minimize the risks. For example, an investor with limited fund canhave a bond portfolio, which is impossible to do if he/she does not have big budget. By Mutual Fund, fund can be collected in big amount to make it easier to diversify both for capital market instruments and money market; it means that thefund is invested in various types of instruments such as deposit, stocks, and bonds.

Second, Mutual Fund helps the investor to invest in capital market easier. Determining which good stocks to buy is not easy. It needs specific knowledge and experiences, which some investors dont have.

Third, time efficiency. Since the fund invested in the Mutual Fund is managed bya professional fund manager, investors do not need to monitor their investmentperformance all the time.

Like other investments, besides giving the investor the opportunity of profit, Mutual Fund has possibilities of risks. Such as:

*Risk of decreased value of participating unit.This risk is influenced by the decrease price of securities (stock, bond,

and other marketable securities) that included in the Mutual Fund portfolio.*Liquidity risk.This risk is related to the difficulty faced by the fund manager if most o

f the unit holders resell (redemption) their unit. Fund manager will find difficulty in providing cash for this redemption.

*Default risk.This risk is the worst risk, which can emerge when the insurance company t

hat insures the Mutual Funds wealth does not pay the indemnity or pay lower thanthe loading value when unwanted events happens, such as the unability to fulfillthe liabilities of parties related to the Mutual Fund, brokerage, custodian bank, payment agent, or catastrophic events that cause the decrease of Net Asset Value of Mutual Fund.

From the investment portfolio, mutual fund can be categorized as follow:


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1.Money Market Funds. This Mutual Fund only invests on debt securities, whic

h maturity date is less than a year. The target is to keep the liquidity and maintain the capital.

2.Fixed Income Funds. This Mutual Fund invests at least 80% of its assets in

debt securities. This mutual fund has relatively higher risk than money market

funds. The purpose is to produce astable return.3.

Equity Funds. Mutual Fund that invest at least 80% of its assets in equities. Because it invests in stocks, it has higher risks than the previous two types of Mutual Fund. However, it gives higher rate of return.

DERIVATIVES

Introduction

Derivative Security is a financial security whose value is derived from the value of another security (underlying asset) such as equity or debt instrument. It can derive directly from an underlying asset or from the underlying assets derivatives. Derivative can also be defined as a contract or agreement, which value depends on the performance of an underlying asset.In a more specific definition, derivative is a traded financial contract betweentwo or more parties to buy or sold an asset/commodity on an agreed time and price. The future value of the derivative is highly influenced by its underlying asset in the Spot Market.Financial Derivatives

Derivatives listed in the Exchange are financial derivatives, which derived fromfinancial instruments such as stock, bond, stock index, bond index, currency, interest rate and other financial instruments. Financial derivatives are often used by Investors and Issuers to perform hedging on their portfolios.Jurisdiction Capital Market Law of the Republic of Indonesia No. 8 year 1995 concerning the Capital Market The Government Regulation of the Republic of Indonesia No. 45 year 1995 concerning the Capital Market Organization The Decision of the Chairman of Bapepam No. Kep.07/PM/2003 dated February 20, 2003 concerning Futures Contract on Security Index as Security The Bapepam Rules No. III. E. 1 dated October 31, 2003 concerning Futures Contract and Option on Securities or on Securities Index Circular Letter from the Chairman of Bapepam No. SE-01/PM/2002 datedFebruary 25, 2002 concerning Futures Contracts Index in the Net Adjusted Workingcapital Report of Securities Company Approval Letter of Bapepam No. S-356/PM/2004 dated February 18, 2004concerning the Agreement of Foreign Futures Contracts (DJIA & DJ Japan Titans 100)Several Derivative products traded at IDX:

1. Stock OptionOption is a contract that gives its Taker (the owner) the right (without obligat


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ion) to buy or sell an asset at a certain price in a certain period of time. Option is officially traded for the first time at the Chicago Board Options Exchange (CBOE) in 1973.Stock option is a contract that gives the Taker the right to buy (call option) or to sell (put option) an underlying stock (listed stock that becomes the basisof the option) in a certain amount, Strike Price (price set by the Bourse for ev

ery option as a benchmark for Exercise) and period of time.Call Option gives the Taker the right, but not obligation, to buy a specified amount of an underlying security at a specified price within a specified time. Onthe other hand, Put Option gives the Taker the right, but not obligation, to sell an underlying security.American-type Options gives the Taker the chance to exercise his/her right during any trading day on or before expiration, while European-type Option gives itstaker the chance to exercise his/her right on Expiration.Below are the Specifications of Stock Options traded at IDX:

Single Stock Option Type

Call Option and Put OptionTrading Unit

1 contract = 10,000 Stock OptionsValidation Period

1,2 and 3 monthsExercise

American method(any time within its term of validity, but only on certain hours of the Bourses trading days)Right Settlement

Cashed on T + 1, by following the guidelines below:

* Call Option=WMA - Strike Price* Put Option=Strike price -WMA

Initial Margin

Rp 3.000.000,- per contractWMA (weighted moving average)

is the average of the stock for 30 minuts, and will show up again every 15 minutesStrike Price

Is the exercise price of every single stock option series (7 series for Call Option and 7 series for Put Option) based onAutomatic exercise

Valid if: call option, if WMA > 110% of the strike price

put option, if WMA < 90% of the strike priceThe Schedule of Stock Option Trading


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Monday Thursday:09.30AM 12.00PM and 13.30PM 16.00PM Friday:09.30AM 11.30AM and 14.00PM 16.00PMExercise Schedule

Monday Thursday:

10.01AM 12.15PM and 13.45PM 16.15PM Friday:10.01AM 11.45AM and 14.15PM 16.15 PMPremium

Traded through continuous auction market

2. Index Futures Contract (LQ45 Futures)

Futures is a contract obligates the buyer or the seller to purchase an underlying financial instrument (index, stock, or bond, etc.) at a future date. Index Futures are futures contracts that use stock indices as their underlying.LQ45 Futures uses the LQ45 index, a well known index that serves as the benchmark of stocks in Indonesian Capital Market, as its underlying. In the fast growingcapital market in Indonesia, LQ45 index can be the most effective way in tracking the stocks market of Indonesia in general.

Specifications of LQ45 Futures

Underlying

LQ45 IndexMultiplier

IDR 500,000 per pointContract Months

Spot Month & 2nd Month, and the first quarter month (Quarter months : June and Des)Trading Hour

Monday - ThursdaySession 1 : 09.15 AM 12.00 PMSession 2 : 13.30 PM 16. 15 PMFridaySession 1: 09. 15 AM 11.30 AMSession 2: 14.00 PM 16. 15 PMLast Trading Day

Last trading day in every contracts monthInitial Margin

IDR 3.000.000/ contract

3. Mini LQ Futures


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Mini LQ Futures is a contract that uses the same underlying as the LQ45 Futures,that is the LQ45 index. The difference between them is that Mini LQ Futures hassmaller multiplier (IDR 100,000/point or 1/5 of the LQ Futures), thus resultedin a lower transaction values, initial margin and transaction fee).

Mini LQ45 Futures is segmented for beginner and retail investors who would liketo practice the LQ Futures transaction in lower requirements, before start doingtransaction in LQ Index.Specification of the Mini LQ Futures:

Underlying


IDR 100,000 per pointContract Months

Spot Month & 2nd Month, and the first quarter month (Quarter months : June and Des)Trading Hour

Monday - ThursdaySession 1: 09.15 AM 12.00 PMSession 2: 13.30 PM 16. 15 PMFridaySession 1: 09. 15 AM 11.30 AMSession 2: 14.00 PM 16. 15 PM

Last Trading Day

Last trading day in every contracts monthInitial Margin

4% of contract value

4. LQ45 Futures Periodic

LQ45 Futures Periodic is a contract that is issued and expired on a certain trading day.There are several types of the LQ45 Futures Periodic:1. Two (2) Weeks Periodic Contract. It is a contract which expiration date falls on the last trading day of the second week after the issue of the contract.2. Weekly Periodic Contract (5 trading days). It is a contract whichexpiration date falls on the fifth trading day after the issue of the contract.3. Daily Periodic Contract (2 trading day). It is a contract which expiration date falls on the second trading day after the issue of the contract.

Specification of the LQ 45 Futures Periodic:


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Underlying


IDR 500,000

Type of Contract:

Code of Contract:a. Two (2) Weeks Periodic

LQ2WYYMDDb. Weekly Periodic Contract (5 trading days)

LQ25DYYMDDc. Daily Periodic Contract (2 trading day)

LQ2DYYMDD

Trading Hour

Monday - ThursdaySession 1: 09.15 AM 12.00 PMSession 2: 13.30 PM 16. 15 PMFridaySession 1: 09. 15 AM 11.30 AMSession 2: 14.00 PM 16. 15 PMPrice Fraction

0.05 point

5. Japan (JP) FuturesJP Futures gives investors the opportunities to invest globally and expand the cope of derivatives product in Surabaya Stock Exchange to be product that used asa benchmark in the world class. It allowed investors to get benefit from the movement of Japan market as the second most active market after the US market in the world.

Underlying

Dow Jones Japan Titan 100Multiplier

IDR 50.000 per pointContract Months

3 quarter contract months(quarter month : March, June, Sept & DesTrading Hour

Monday - ThursdaySession 1: 09.15 AM 12.00 PMSession 2: 13.30 PM 16. 15 PM

FridaySession 1: 09. 15 AM 11.30 AMSession 2: 14.00 PM 16. 15 PM


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Last Trading Day

The second Thursday in every contract monthInitial Margin

4% of contract value

ETF or Exchange Traded Fund can simply be defined as mutual fund traded in the Exchange. Just like mutual fund, ETF is a Collective Investment Contract, but similar to shares, its investment unit is listed and traded in the Exchange. Like conventional mutual fund, ETF also uses an Investment Manager and Custodian Bank.

One type of ETF developed in the Indonesias Capital Market is the Index Mutual fund, where the underlying index used is the LQ45 index.

The difference between ETF and Open-Ended Mutual Fund:

FEATURE

ETF

OPEN-ENDEDMUTUAL FUND

Trade

Traded in the Exchange during the trading hours

Through Investment Manager or Sales Agent

Minimum Investment

None

Various (depends on each mutual fund)

Price

ETF LQ45 follows the trend of LQ45 index and the premium/discount of the bid/offer is adjusted to the markets order.

Decided by the Net Asset Value of the mutual fund

Price Announcement

Displayed continuously by the Exchange during the trading hours.


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Announced one time by the Investment Manager based on the Net Asset Values calculation.

Market Making

Almost all ETF has market maker (Liquidity Provider)

None

Derivatives Effect

Several ETF have option or futures on underlying index or ETF itself.

None

Strong points of ETF

No.

ETF (LQ45 Index)

1

Investment Unit can be traded in the IDX (more liquid)

2

Subscription & Redemption can only be done by the Participant Dealer and Sponsors

3

The chance of redemption error that can influence the Net Asset Value is smaller

4

The portfolio of shares is more transparent

5

The increasing trend of NAB is following the increasing index of the LQ45 index

6

Minimum amount of investment is smaller (1 lot of shares=about Rp 500 thousand)[Printer friendly version]


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Background

Due to the passion to improve Indonesias Capital Market by finding new competentinvestors and spreading the knowledge and information of share investment, the Indonesia Stock Exchange organizes many education programs to educate potential i

nvestors about Capital Market. One of them is the IDX Regular Education Programthat is organized every year. This program serves as an investment media and a way to attract more people to invest in the Capital Market.

IDX Regular Education Program is delivered as simple as possible and adjusted tothe background and profile of the audience in general. Speakers of this programare professional practitioners in the Capital Market who come from the IDX, Indonesian Clearing and Guarantee Corporation (KPEI), Indonesian Central SecuritiesDepository (KSEI) and Danareksa.

The Purpose and Benefits

IDX Regular Education Program aims to arouse public interest in learning share investment thoroughly, so that they will become competent investors, and at the same time, attract new investors, either retailed ones or institutionals.

The Target

The participants of this program are entrepreneurs, executives, academics, housewives, retirements, and others, especially those who have not yet invest in theCapital Market.

Decription of Activity

IDX Regular Education Program is divided into three levels:

1.Basic Education Program is the level for participants with less knowledge

of share investment. It consists of four sessions, and each session is held on every Wednesday.

Time : 09:00 AM 11:00 PMPlace

:

The Gallery of Indonesia Stock ExchangeThe Indonesia Stock Exchange Building , 2nd Tower, 1st floorJl. Jend. Sudirman Kav 52-53 JakartaMaterial

:

1st session : The Structure of Indonesias Capital Market2nd session : Basic Knowledge of Securities3rd session : Mutual Fund4th session : The Demo of Securities Trading Simulation

2. Intermediate Education Program is the level for participants who have comp


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leted the Basic level and are interested to learn more on share investment. It consists of four sessions, and each session is held on every Wednesday.

Time : 13:30 PM 16:00 PMPlace

:


:

1st session : Mechanism of Securities Transaction2nd session : Fundamental Analyses3rd session : Technical Analyses4th session : Trading Simulation

3. Advance Education Program is the level for participants who have completed

the Intermediate level and are interested to learn more on other investment instrument in Capital Market. It consists of four sessions, and each session is held on every Wednesday.

Time : 16:00 PM 18:00 PMPlace

:


:

1st session : Bonds2nd session : Exchange Traded Fund (ETF)3rd session : Option4th session : Market Update

The participants who have completed all the sessions in a level will receive a c

ompletion certificate signed by the President Director of IDX.Contact Person


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To learn further about IDX Regular Educational Program, please contact:Indonesia Stock Exchange

Jakarta:Corporate SecretaryPhone : (+62-21) 515-0515

ext.: 7706 (Yane), 7708 (Taufiq), Ajeng (7712)Fax : (+62-21) 515-0330,E-mail : [email protected]; [email protected], [email protected]

Surabaya:IDX Information and Education CenterPhone : (+62-31) 534-0888ext.: 300 (Esti), 303 (Jamil), 335 (Nunung), 334 (Bambang), 323 (Rudi)Fax : (+62-31) 534-2888E-mail : [email protected]; [email protected]; [email protected]

o.id; [email protected]; [email protected][Printer friendly version]

The establishment of IDX Corners is to introduce the Capital Market as early aspossible to the academic world. Currently, the establishment of IDX Corners is using the concept of 3 in 1 (co-operation between JSX, University and Security Company) so that the academia can not only learn the Capital Market theoretically,but are also able to practice it.

The purpose of IDX Corners is to reach out the educated groups so that they canunderstand the Capital Market better.

IDX Corners have all the publications on Capital Market published by the IDX, including the Law of capital Market. Information and IDX data can be used by the academia for academic purpose, not for commercial purpose of share trading.

It is hoped that through this cooperation, the information of Capital Market will be spread out, and that the academics, economic practitioners, investors, capital market observers and public will receive optimum benefits of capital market,either for socialization, education or economically.

Benefits received by each party that established IDX Corners.

For IDX, IDX Corners have become means of socialization and education among theacademics, so that the academics do not only know about the capital Market fromthe theoretical side, but also are able to practice it.

For the universities, IDX Corners are strategic alliances to Capital Market practitioners (IDX, Exchange Members, and Vendor Data) and a way to improve their Brand Name and value of the University.

For the Data Vendor, IDX Corners are product promotion Medias among the academics, and as a media for human resource recruitment.

The obligations of each party

Indonesia Stock Exchange will send publications published by the IDX to support

the activities related to Capital Market educational Socialization, give opportunity of internship and facilitate investment clubs.


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The university must provide the space and infrastructure needed for the galleryof the IDX Corners and Capital Market Lab. It includes providing proper PCs according to the necessity (minimum of 3 PCs: 2 for the Realtime Data and 1 for theoperation of IDX Corners).

The Securities Company has to give educational and socialization service of Capital Market, sharing profit according to the agreement, and giving the opportunit

y of internship.

The Vendor of Realtime Data has to give a free subscription at least for 1 terminal in the Capital Market Lab, giving educational service and socialization of Realtime Data, and also giving the opportunity for internship.

Procedures of IDX Establishment in Universities

Step I : Correspondence

*It is the correspondence phase, where proposals and the universitys profile

are studied and discussed to understand the commitment of both sides.*Proper test to see the potentials of the campus for IDX Corners, such as i

ts capacity.* Finding the strategic location for the IDX Corner, such as:- Easily accessed by the students- Located in an area often passed by the students.- Minimum size of the room is 6 m x 5 m- Attractive room design.

* Choosing the Security Company and preparing the data from the Data Vendor.

Step II: Location Survey

* Finding the strategic location and preparing all things needed for the IDXCorner.

Step III: Agreement Signing and Inauguration of the IDX Corner

* IDX Corner is ready to open any time after the cooperation agreement and all other requirements have been fulfilled.

Download:>> IDX Corner Guideline>> IDX Corner Proposal (sample)

inilah.com/feb

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