How to Buy Indonesian Stocks and Bonds (2024)

Securities Account at an Indonesian Broker

For Indonesian citizens and those foreigners/expats who live in Indonesia (thus who have a resident permit/KITAS or KITAP) it is possible to open a securities account at an Indonesian broker. Usually the following steps need to be taken:

1. Submit a copy of your passport
2. Fill in the agreement form provided by the broker
3. Pay a deposit; the amount varies from broker to broker (let's say USD $5,000)
4. Obtain approval for the account

However, for an individual (as opposed to corporate) foreign investor who does not have a KITAS and Indonesian tax number (NPWP) it is very difficult, perhaps even impossible, to open a securities account in Indonesia. But not all brokers have the same policies and therefore you are advised to contact brokers and inquire about their exact policies regarding foreign clients. For example, some brokerages will approve an account for an expat who does not have a NPWP (but the KITAS is still required though).

An extensive list of brokers that are active in Indonesia's secondary market is provided on the official website of the Indonesia Stock Exchange. It is important to do some research about the broker before you decide to become a client as it has occurred that Indonesian brokers (in particular smaller ones) embezzled their clients' money. The IDX monitors brokers that are member of the IDX, but does not publish any preliminary findings. Announcements will only be made when the IDX decides to suspend a broker due to irregularities, but by then it is often too late for investor clients to withdraw their money.

For questions regarding the purchase of Indonesian stocks, please contact us here.

Some people can consider reading activtrades review to start investing in stock markets.

Structure of Indonesia's Capital Market

How to Buy Indonesian Stocks and Bonds (1)

How to Buy Indonesian Stocks and Bonds (2024)

FAQs

How to Buy Indonesian Stocks and Bonds? ›

Investors can buy individual Indonesian stocks directly via stockbrokers or online trading platforms. International brokerages also offer a range of portfolios of Indonesian stocks.

How to buy Indonesian bonds? ›

Securities Account at an Indonesian Broker
  1. Submit a copy of your passport.
  2. Fill in the agreement form provided by the broker.
  3. Pay a deposit; the amount varies from broker to broker (let's say USD $5,000)
  4. Obtain approval for the account.

How can you invest in foreign stocks and bonds? ›

How Do You Buy International Stocks?
  1. Buy individual stocks directly on international exchanges. ...
  2. Access international stocks via American Depository Receipts (ADRs). ...
  3. Invest internationally through ETFs and/or mutual funds.

Is Indonesia a good place to invest? ›

Many economists believe that the fourth most populated country in the world is one of the best places to invest including the terms of climate and investment services. Indonesia has almost everything, from natural resources, well-trained workers, and the large, growing domestic market.

Can you trade US stocks in Indonesia? ›

Stocks and bonds are regulated by US law, yet, you do not have to be a US citizen to trade in the US stock market; in other words, you may buy US shares being a citizen of Indonesia. No specific laws prohibit non-US citizens from investing in the different US stock markets like NYSE (New York Stock Exchange) or Nasdaq.

How to buy Indonesian shares? ›

Investors can buy individual Indonesian stocks directly via stockbrokers or online trading platforms. International brokerages also offer a range of portfolios of Indonesian stocks.

How much is Indonesia 10 year bond? ›

The Indonesia 10 Years Government Bond has a 6.915% yield (last update 16 Mar 2023 12:15 GMT+0).

Can US citizens invest in foreign stocks? ›

Many foreign companies are registered and file reports with the SEC, and many more are unregistered and trade in the over-the-counter market. Investors also can purchase stock directly on foreign markets.

Can an American invest in foreign stocks? ›

Key Takeaways. Investors can access foreign stocks via ADRs, GDRs, direct investing, mutual funds, ETFs, and MNCs. Buying foreign stocks allows investors to diversify their portfolio's risk, in addition to giving them exposure to the growth of other economies.

What is the easiest way to invest in foreign stock is to purchase? ›

The easiest and most common way to invest in foreign markets is to purchase exchange-traded funds (ETFs) or mutual funds that hold a basket of global stocks and bonds.

What is the risk of investing in Indonesia? ›

Lack of sufficient quality and quantity of infrastructure in Indonesia has been barring economic and social development to reach its full potential. The country's recent macroeconomic growth in fact proves to be a burden on its existing infrastructure as it needs to absorb significantly increased economic activity.

Is Indonesia a good country to retire? ›

The low cost of living in Indonesia is one of its major selling points to U.S. retirees. According to Numbeo data from January 2023, a cost-of-living database, Indonesia's cost of living averages around 55.3% lower than in the U.S. Rent also tends to be less expensive, at an average of 81.5% lower than the U.S.

Why Elon Musk want to invest in Indonesia? ›

We want to build an industrial ecosystem for lithium batteries. Indonesia, Southeast Asia's largest economy, has abundant natural deposits of tin, copper, nickel, cobalt and bauxite, some of which are key materials for electric vehicle batteries.

How much is Indonesia stock market fees? ›

For every IDR1 billion (approximately US$69,977) of share capitalization value, the annual listing fee is IDR500,000 (approximately US$35), with the minimum listing fee being IDR50 million (approximately US$3,499) and the maximum being IDR250 million (approximately US$17,494).

How much does the US invest in Indonesia? ›

U.S. foreign direct investment (FDI) in Indonesia (stock) was $18.7 billion in 2020, a 3.2 percent decrease from 2019. U.S. direct investment in Indonesia is led by mining, professional, scientific, and technical services, and manufacturing.

Does the US have a free trade agreement with Indonesia? ›

Indonesia does not have a free trade agreement with the United States, but its nickel products have increasingly become important in the supply chain.

Why do investors invest in Indonesia? ›

The country is rich in natural resources, has a large domestic market and growing technological needs. Major target sectors for medium-sized foreign direct investments in Indonesia include especially – in addition to infrastructure – mechanical engineering, metal and electrical industries.

Why should I invest in Indonesia? ›

Marketers and economic observers considered Indonesia as "Asia's next big opportunity" due to its rapid growth in the economy over the last decade. Specifically, more than 5% per year. Even in the most challenging pandemic, Indonesia still manages to have a good income from foreign investment.

What is the highest stock price in Indonesia? ›

Historically, the Indonesia Stock Market (JCI) reached an all time high of 7377.50 in September of 2022. Indonesia Stock Market (JCI) - data, forecasts, historical chart - was last updated on April of 2023.

What is the interest rate of Indonesia bond? ›

The Indonesia 10Y Government Bond has a 6.773% yield. Central Bank Rate is 5.75% (last modification in January 2023).

What is the yield of Indonesia USD bond? ›

INDON 5.950% 08Jan2046 Govt (USD) | Bondsupermart.

What is the yield of Indonesia 3 month bond? ›

Indonesia Government Bonds
Residual MaturityYield
1 month5.432%
3 months5.517%
6 months5.773%
1 year6.115%
7 more rows

Do foreigners pay tax on US stocks? ›

If you are a nonresident alien, generally you will not have to pay U.S. capital gains tax on your investment earnings. If you are a resident alien, generally, you will be subject to the same capital gains tax as U.S. citizens. Consult with a tax advisor for any assistance you may need.

How to buy foreign stocks online? ›

To buy foreign stocks, you must first open an international brokerage account. Then, after funding your account, you may need to request access (including price data) for the exchange you want to trade. Alternatively, simply search for the specific symbol to see if it is available to trade from within your account.

Can I buy foreign stocks on Fidelity? ›

What you can do. Trade in 25 countries with the flexibility to settle in either U.S. dollars or the local currency. Exchange between 16 different currencies, offering you the potential to capitalize on foreign exchange fluctuations. Trade domestic and international stocks in a single account.

How do I start investing in foreign stocks? ›

Resident Indian can open an overseas trading account with an Indian broker having tie-up with international brokers such as ICICI Direct, HDFC Securities, Kotak Securities, and Axis Securities etc. or directly open an account with a foreign broker having presence in India like Charles Schwab, Ameritrade, Interactive ...

Are foreign stocks riskier than US stocks? ›

First, from a purely statistical standpoint, U.S. stocks are more volatile. They also have a higher correlation to the global market (as defined by the Orion Portfolio Solutions Equity Baseline Portfolio of 60% domestic stocks and 40% non-U.S. stocks).

Is it worth it to invest in foreign stocks? ›

International stocks can give a lift to your stock portfolio when U.S. stocks are stuck in the mud. Over the long term, this should smooth out volatility in your stock market returns, investing experts say. “It's hard to justify a position in an asset class that's been underperforming,” says Mayfield.

What is the best foreign investment platform? ›

Interactive Brokers (IBKR) is hands down our top choice for the Best Online Broker for International Trading.

Can you buy foreign stocks with Robinhood? ›

You can invest in over 5,000 securities with Robinhood Financial, including most U.S. stocks and exchange-traded funds (ETFs) listed on U.S. exchanges. We're also excited to offer options trading and access to over 650 global stocks through American Depositary Receipts (ADRs).

Can you buy stocks directly from an exchange? ›

To buy stocks, you'll typically need the assistance of a stockbroker, since you cannot simply call up a stock exchange and ask to buy stocks directly. When you use a stockbroker, whether a human being or an online platform, you can choose the investment that you wish to buy or sell and how the trade should be handled.

Is Indonesia open to foreign direct investment? ›

JAKARTA, Jan 24 (Reuters) - Indonesia's foreign direct investment surged 44.2% on a yearly basis in 2022, with the base metals sector drawing in the biggest inflows, the investment minister said on Tuesday, noting 2023 would be a more difficult year to attract investment.

Who is the big investor in Indonesia? ›

Indonesian Capital Market Ends 2022 on High Note: OJK

Other major foreign investors have come from China ($8.2 billion), Hong Kong ($5.5 billion), Japan ($3.6 billion), Malaysia ($3.3 billion), the United States ($3 billion), South Korea ($2.3 billion), and the Netherlands ($1.2 billion).

Is Indonesia considered a high risk country? ›

Indonesia - Level 2: Exercise Increased Caution. Updated to include the revised criminal code and to remove risk of travel in Central Sulawesi. Exercise increased caution in Indonesia due to terrorism and natural disasters.

Can a US citizen live in Indonesia? ›

If you want to move to Indonesia long-term, you will need to apply for an entry-visa VITAS (Visa Izin Tinggal Terbatas) and a temporary stay permit— ITAS (Izin Tinggal Terbatas). Then you need to get a KITAS (Kartu Izin Tinggal Terbatas)— a temporary residence card.

Is it safe for Americans to live in Indonesia? ›

Life in Indonesia comes with a high risk of earthquakes, road traffic accidents and petty crime – however, one of the biggest threats in Indonesia is terrorism. Attacks on political targets in Jakarta are still occurring and, tragically, westerners are a particularly popular target for insurgents.

How long can a US citizen stay in Indonesia? ›

If you are a US citizen, you do not need a visa for Indonesia. You need only your passport (which has to be valid for another six months) and a return or onward ticket. You can stay in Indonesia without a visa for up to 30 days.

Where does Elon Musk hold his wealth? ›

With an estimated net worth of around $192 billion as of March 27, 2023, primarily from his ownership stakes in Tesla and SpaceX, Musk is the second-wealthiest person in the world, according to both the Bloomberg Billionaires Index and Forbes's real-time billionaires list.

Is Tesla coming to Indonesia? ›

Tesla is close to signing a preliminary agreement to build a factory in Indonesia, according to an agency report. According to the report, the factory will be designed for an annual production of one million electric cars.

Why Tesla is moving to Indonesia? ›

According to multiple sources, Tesla's Elon Musk is negotiating the setting up of production in Indonesia. Indonesia has massive nickel and some cobalt reserves, excess vehicle building capacity, and a great need to move forward in the rEVolution.

How many people in Indonesia invest in stocks? ›

Jakarta, July 9, 2022 – According to the Indonesia Central Securities Depository (KSEI) the number of Stock Investors in the Indonesian Capital Market has breakthrough 4 million.

How many people invest in the stock market in Indonesia? ›

As of September 2021, the Indonesia Stock Exchange had 750 listed companies, and total stock investors were about 6.4 million, compared to 2.5 million at the end of 2019.

Where do people shop in Indonesia? ›

Shopping in Indonesia - 11 Zones For All Your Indonesian Shopping Needs
  • Lok Baintan Floating Market. ...
  • Beringharjo Market. ...
  • Pasar Cibaduyut. ...
  • Pasar Tanah Abang. ...
  • Pasar Triwindu. ...
  • Sukhawati Art Market. ...
  • Celuk Village Market. ...
  • Pasar Gede Solo.

Which country does the US invest in the most? ›

The United Kingdom received the most direct investment from the United States in 2021, an amount exceeding one trillion U.S. dollars.
...
CharacteristicDirect investments in billion U.S. dollars
United Kingdom1,005.47
Netherlands885.31
Luxembourg715.59
Ireland556.6
9 more rows
Sep 30, 2022

Which country has most US investment? ›

The main investing countries in the U.S. are Japan, Germany, Canada, the United Kingdom, Ireland and France. Most of these investments are in manufacturing, financial and insurance activities, and trade and maintenance. In 2021, California received the most investment, followed by Massachusetts and New York (BEA).

Which country has the US invested most in? ›

U.S. direct investment abroad (tables 1 – 6)

The U.S. direct investment abroad position was largest in the United Kingdom ($1.0 trillion), followed by the Netherlands ($885.3 billion) and Luxembourg ($715.6 billion). Ireland ($556.6 billion) and Canada ($406.4 billion) rounded out the top five.

What does the U.S. get from Indonesia? ›

In 2021, U.S. imports of $6.8 billion in Textiles, Footwear, and Headgear from Indonesia grew 25.5% from $5.4 billion in 2020. They now make up 4.4% of total U.S. imports of those commodities. In 2021, the U.S. imported $5.6 billion in Agricultural Goods from Indonesia, an increase of 36.5% ($1.5 billion) from 2020.

Does the U.S. have any free trade partners if so who? ›

The United States has comprehensive free trade agreements in force with 20 countries. These are: Australia. Bahrain.

Can I trade U.S. stocks from Indonesia? ›

Stocks and bonds are regulated by US law, yet, you do not have to be a US citizen to trade in the US stock market; in other words, you may buy US shares being a citizen of Indonesia. No specific laws prohibit non-US citizens from investing in the different US stock markets like NYSE (New York Stock Exchange) or Nasdaq.

Are Indonesian government bonds safe? ›

Government Bonds are one of the safest investment products because they have low risk. These Bonds are debt securities issued by the Government of Indonesia, then offered to the individual investors.

What is the yield of Indonesia 2 year bond? ›

The Indonesia 2 Years Government Bond has a 4.899% yield (last update 6 Jun 2022 8:27 GMT+0).

What is the 1 year government bond rate in Indonesia? ›

Indonesia 1 Year Bond - Historical Data
PeriodChangeMax
1 Week+16.2 bp6.060 % Apr 9, 2023
1 Month-25.0 bp6.417 % Mar 13, 2023
6 Months+16.1 bp6.462 % Nov 21, 2022
1 Year+240.2 bp6.462 % Nov 21, 2022

What is the yield of Indonesia 6 month bond? ›

The Indonesia 6 Months Government Bond has a 5.397% yield (last update 5 Apr 2023 8:15 GMT+0).

Which country has the highest interest rate for bonds? ›

Countries With The Highest Bond Yields
  • United Mexican States (Mexico) 10 Year Bond Yield as of November 30th, 2022: 9.642% ...
  • Russian Federation. ...
  • Republic of South Africa (RSA) ...
  • Republic of Türkiye. ...
  • Republic of Namibia. ...
  • Republic of Colombia. ...
  • Federative Republic of Brazil. ...
  • Islamic Republic of Pakistan.
Dec 1, 2022

What is the 5 year government bond rate in Indonesia? ›

The Indonesia 5 Years Government Bond has a 6.488% yield (last update 2 Apr 2023 2:15 GMT+0).

What is the safest Treasury in the world? ›

U.S. Treasury bonds are widely considered the safest investments on earth. Because the United States government has never defaulted on its debt, investors see U.S. Treasuries as highly secure investment vehicles.

What is the rate of 3 month treasury bill in Indonesia? ›

The Indonesia 3 Months Government Bond has a 5.084% yield (last update 11 Apr 2023 2:15 GMT+0).

What is the 3 year government bond rate? ›

3 Year Treasury Rate is at 3.83%, compared to 3.70% the previous market day and 2.67% last year. This is higher than the long term average of 3.37%.

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