Ayo ! Cermati .

Inilah saatnya optimis pasar-global khususnya IHSG naik hingga pe

nutupan sore 3 feb 2010.Dominasi pasar-global internasional saat ini masih dipen
garuhi kuat China di regional Asia-Asean.
Sesuai aggreement dengan indonesia terkait ACFTA.terlihat di grafik penutupan 2
feb 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 penu
h ,lalu lengan kosong,cenderung optimis naik dari BMRI yang cukup signifikasi ),
UNTR (industri united tractor,wajib dicermati bahwa pagi ini cenderung naik cuku
p tinggi IHSG terangkat naik hingga sore),ASII(Astra Group,cenderung turun (leng
an beban grafik banyak kosongnya) di awal pagi ini 3 feb 2010).
hal yang patut diperhitungkan ialah komoditi dari sumatra,sulawesi,kalimantan,Ir
ian Jaya-papua,Jawa).Komoditas CPO kelapa-sawit,komoditi kakao-gula-kopi,komodit
as ternak-sapi di sulawesi dengan order malaysia aggreement-otonom sulawesi,indu
stri pertambangan di Irian Jaya-papua.
IHSG hingga penutupan optimis naik ke 0,78 point.
Aggrement UMKM/Koperasi wajib diperhitungkan untuk meningkatnya Export-Import ya
ng pastinya mensejahterakan rakyat khususnya home-industri keterampilan.

BONDS
A bond is an instrument in which the issuer (debt or borrower) promises to repay
to the lender/investor the amount borrowed (principal) plus interest (coupon) o
ver 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 or
quarterly. When the bond matures, the investor receives the entire amount invest
ed, 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 t
ime 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 financi
ng public utilities project.
4. Retail Bonds: Bond traded in a bourse trading mechanism as applied in s
tock trading with relatively small nominal value.
5. Sharia Bond: Bond which has yield refers to profit sharing of the bond
issuer but not relay on interest based. In term of its yield, there are two type
of calculating, as follows:
· Sharia Mudharabah Bond is a sharia bond with initial contract base on
profit sharing so that investor may receive income after knowing revenue of the
bond issuer.
· Sharia Ijarah Bond is a sharia bond uses such as leasing contract so
that ijarah s fee (like a coupon) will be in fix rate and it can be known or count
ed from the initial issued.
The different type of coupon:
1. Zero Coupon Bonds: Bond which has no coupon along the period of its tim
e 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 cash
money on specified period of time according to the issuer s provision.
3. Fixed Coupon Bonds: Bond which has fix amount of coupon rate from the t
ime of initial issued until maturity date. Fix coupon bond will be paid at speci
fic period of time.
4. Floating Coupon Bonds: Bond which has coupon rate that is usually keep
on adjusting to the reference rate in the market, such as weighted average of in
terest rate of average time deposit (ATD) in the biggest government bank or priv
ate 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 gov
ernment corporation or private corporation.
* Coupon (the Interest Rate) is the interest value occasionally received by
the bondholders (usually every 3 or 6 months). Bond s coupon is asserted in annual
percentages.
* Tenor is the date when the bondholders will receive principal payment of t
he bond. The maturity date of each bond varies from 365 days to more than 5 year
s. A bond close to maturity date has lower risk than a bond that is far from mat
urity. 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/inte
rest.
* 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 failed
to make coupon or principal payment on the determined time), an investor should
pay attention on the rating of each bond issued by official rating institution
such as PEFINDO or Kasnic Credit Rating Indonesia.
Bonds Pricing:
Different to stock s price that is expressed in currency unit (rupiah amount), bon
d s price is expressed in percentages (%) unit that is percentages of its nominal
value. There are 3 (three) possibility of the bond s price offered to the market:
* Par Value Bond s price is the same as its nominal value. Example: A bond wit
h nominal value Rp 50 million sold at price 100%, the bond s value is 100% x Rp 50
million = Rp 50 million.
* At Premium Bond s price is higher than its nominal value. Example: A bond wi
th nominal value Rp 50 million sold at price 102%, the bond s value is 102% x Rp 5
0 million = Rp 51 million
* At discount Bond s price is lower than its nominal value. Example: Bond with
nominal value Rp 50 million sold at price 98%, the bond s value is 98% x Rp 50 mi
llion = Rp 49 million
Bond Yield :
Return on bond investment will be stated as yield that is source of income for t
he investors who allocate their money to buy a retail bond/corporate bond/govern
ment bond. One of the important thing that is to be considered before they decid
e to invest in bond is the amount of bond yield as a measurement tool to know th
e annually rate of return.
There are two terminologies in calculating yield, current yield and yield to mat
urity.
*
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
Example:
Bond issuer PT. XYZ , gives coupon rate 17% p.a. to their bond holder while bond tr
aded at 98% with nominal value Rp 1.000.000.000, then its current yield as follo
ws:
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 which
is often used by bond participant, as follows:
YTM approximation = C + R - P
n x 100%
R + P
2
Explaination:
C = cupon
n = period of time to maturity (in year)
R = redemption value
P = purchasing value

Example:
Bond XYZ was bought on September, 5-2003 at 94.25% with coupon rate 16% which wi
ll be paid quarterly and its maturity date on July, 12, 2007. What is YTM approx
imation of Bond XYZ?
C = 16%
n = 3 year, 10 month, 7 day or equal to 3.853 year
R = 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. Alte
rnative internal financing generally comes from the retained earning, while exte
rnal financing can come from creditors in form of debt, other forms of funding o
r by issuing debenture papers, and even financing by participating in stock (equ
ity). Financing by participation mechanism is usually done by selling company s st
ocks to the public or often known as going public.
To go public, companies have to make internal and documents preparation in accor
dance to the requirements needed for going public, and fulfill all the requireme
nts stated by the Bapepam. Public offering or go public is the activity of stock
or other marketable securities offering by an issuer (going public firm) to the
public based on the procedures arranged in the Capital Market Law and its Imple
mentation Rules.
Public offering accommodates these activities:
* Primary Market Period, when stocks are offered to investors by underwriter
through selected Selling Agent;
 * Shares subscriptions, the allocation of investors securities order accordin
g 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 offe
ring process. First, the company, who will issue the stocks, holds Shareholder G
eneral Meeting and asks the approval from shareholders. After the approval, the
issuer will appoint the underwriter, market institutions and supporting professi
ons that consists of:
* Underwriter. Underwriter is the party who has the most involvement in assi
sting the issuer to go public. Underwriter has to prepare all the documents, pros
pectus, and giving the guarantee of the issuing process.
* Public accountant (Independent Auditor). Public accountant is responsible
to 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 company s basic budget and various agree
ment underlying the public offering, and notes of meeting.
2. Registration-Statement Submitting Step
In this step, the company will complete the registration by giving support
ing documentations to the Bapepam until the Bapepam states that the Registration
Statement is effective.
3. Shares Offering
In this step, the issuer offers its stock to the investors society. Investo
rs can buy the shares through their appointed selling agents. Offering period is
usually 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 relea
sed in the market, while the amount of shares that the investors want to buy is
150 million shares. If the investors could not get the shares at the primary mar
ket, they can buy it in secondary market after the stock is listed in exchange.
4. Shares Listing in the Exchange
After 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 Exchang
e (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 prospective
Issuer s Listing depends on the fulfillment of the initial listing requirements on
each Board.
Main Board is intended for listed big companies that have track records, while t
he Development Board is intended for companies that have not yet fulfill the lis
ting requirements of the Main Board, including prospective companies that have n
ot 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 the
following requirements:
1.
Registration statement has been stated effective by the Bapepam
2.
 The issuer is not in lawsuit that could influence the existence of the com
pany
3.
Its business field is directly or indirectly not prohibited by the prevail
ing law of Indonesia
4.
Particularly for issuers in manufacturing field, they are not in pollution
problem (this is proved by the AMDAL certificate) and for issuers in forestry f
ield 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 Contra
ct or Regional Mining License; one director with technical skill and experience
in 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 cann
ot be listed in the Exchange
8.
Financially related requirements of the initial listing must base on the l
ast 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 they
have fulfilled the requirements below:
No
Criteria
1.

Have fulfilled general requirements for stock listing

2.

Until the proposal of listing, the company has been running its operational acti
vities in the same core business for at least 36 months in sequent
3.
Have audited the last three years Financial Reports, and have received P
roper Opinion Without Exception for the last 2 years audited financial report an
d Interim Audited Income Statement (if exists)
4.
Based on the last Audited Financial Report, the company must have at lea
st an amount of Rp 100,000,000,000 (one hundred billion rupiah) as Net Tangible
Asset
5.
The amount of shares owned by the minority shareholders after public offering is
at least 100,000,000 (a hundred million) shares or 35% of paid up capital (depe
nds on which one is smaller)
6.

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

ady have accounts in one of the Exchange Memberss, 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 shareholder
s is the last number of shareholders at least 1 month before proposing the listi
ng application.
* For issuer listed in another Bourse, the number of its shareholders is cou
nted based on the average of the last six months.

Criteria of Initial Listing on the Development Board

No
Criteria
1.
Have fulfilled general requirements for stock listing
2.
Until the proposal of listing, the company has been running its operatio
nal activities in the same core business for at least 12 months in sequent
3.
Until the proposal of listing, the company has been running its operatio
nal activities in the same core business for at least 12 months in sequent
4.
Have net tangible assets of at least Rp 5,000,000,000 (five billions Rup
iah)
5.

If issuer experiences operating loss or does not produce any profit yet or opera
tes less than 2 years, it is obligated to:
* achieve profit and net income on the end of the second book year based on
the financial projection announced in the Exchange.
* Especially for issuer, whose field of business needs longer time to reach
break event point (such as infrastructures, agricultures of hard plants, Forest
Managing Right concession or Industry Plan Forestry or others business field rel
ated to public services) shoul achieve profit and net income at least at the end
of the sixth year since the listing
6.
The amount of shares owned by the minority shareholders after public offering of
five days before the listing proposal (for public company which shares have not
been listed) is at least 50,000,000 (fifty million) shares or 35% of paid up ca
pital (depends on which one is smaller)
7.

The number of shareholders is at least 500 (five hundred) shareholders, who alre
ady 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 shareholder
s is the last number of shareholders at least 1 month before proposing the listi
ng application
 *
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 c
ompany or brokerage office. There are about 120 securities companies listed as t
he Exchange Members in the Jakarta Stock Exchange.
The opening document of the account encompasses complete customer s identity (incl
uding investment targets and financial condition) and also some information rega
rding the kind of investment the customer will make.
The customers or investors could make selling or buying order after they have be
en 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 do
the transaction. The amounts of the deposit are various; for example, some secu
rity companies require their customers to deposit Rp 25 million as the gurantee
fund 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 sha
res. In stock trading, the amount of shares traded uses a trading unit called as
lot. In the Jakarta Stock Exchange, one lot means 500 shares and that is the mi
nimum limit of buying shares. The fund needed to buy them is various because the
stock prices listed in exchange are also various. For instance, stock price of
XYZ 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 ABC s stock price per share
is 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 t
he Exchange Days/Trading Day.

Exchange Day

Trading Session

Time
Monday to Thursday

Session I
Session II
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 be
explained as follow:
1. Become a customer in a Security Company
In 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, th
e 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 th
e investor come straightly to the brokerage company, or through means of telecom
munication such as the telephone.
3. Order is sent to a Floor Trader
Every 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 J
ATS computer. There are hundreds of JATS terminal in the Trading Floor to put in
the customers orders. The orders in the JATS system will be monitored by the flo
or traders, brokers in the brokerage office and the investors. There should be a
communication in this step between the brokers and the investors so that the bu
ying and selling orders made by the investors can be carried out well. It is in
this step also that the Floor Trader can do some changes in the order, such as c
hanging the offering price.
5. Transaction is matched
In 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
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 in
vestors that their orders have been fulfilled.
6. Transaction settlement
The last step of the transaction process is the transaction settlement. In
this step, the investors cannot automatically receive their rights because they
first 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 rec
eive 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 if
the transaction happens today (T), the rights will be received on the next three
days, or known as T + 3.

Stock price index is an indicator that shows the movement of the stock prices. I
ndex is used as an indicator of market trend; it means that index movement descr
ibes 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, the
index is 300 and at the end of the month becomes 360, we can say that the averag
e stock price experiences an increase of 20%.
Index movement becomes an important indicator for investors to determine if they
would sell, hold, or buy one or several stocks. Because stock prices move every
second 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 basic
price, 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 i
nto 9 sectors: agriculture, mining, basic industry, miscellaneous industry, cons
umption, property, infrastructure, finance, trades and services, and manufacture
.
3. Jakarta Composite Index, the index that uses all listed shares as the inde
x s component.
4. LQ 45 Index, the index that consists of 45 chosen stocks by considering 2
variables: trading liquidity and market capitalization. There are new stocks lis
ted in the LQ 45 index every 6 months.
5. Jakarta Islamic Index (JII). JII is an index consists of 30 stocks that ac
commodate the Islamic Canon Law investment or an index that is based on Islamic
Law. In other words, this index includes stocks theat fulfill the criteria of in
vestment in Islamic Law. The stocks included in this index are stocks issued by
issuers that run their business activities not in contrast with the Islamic Law,
such as:
o Gambling business and any games that include gambling or prohibited
trading.
o Conventional financial institution, including conventional banking a
nd insurance.
o Businesses that produce, distribute, and trade food or drink that ar
e prohibited by Islamic Law.
o Businesses that produce, distribute, and/or provide products and ser
vices that destroy morality and harmful.
6.
Main Board and Development Board Indices. Stock price indices that specifi
cally based on group of stocks listed in JSX, Main Board Group and Development B
oard Group.
Mutual Fund is an investment alternative for investors, especially for small inv
estors and those who have less time and skill to count the risks of their invest
ments. Mutual Fund is designed as tool to gather fund from public that have the
capital, 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 In
donesia s Capital Market can increase.
Generally, Mutual Fund is defined as a mean to collect fund from the investment
society to be invested in portfolios by the fund manager. This definition is als
o written in the Capital Market Law No.8/1995 section 1 clause (27) regarding Mu
tual Fund. There are three points shown on this statement. First, Mutual Fund co
llects fund from the society. Second, the fund is then invested in the securitie
s portfolio. Third, the fund is managed by an Investment manager.
Therefore, the fund put in the Mutual Fund is investors collective fund, and the
Investment 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 their
securities to minimize the risks. For example, an investor with limited fund can
have a bond portfolio, which is impossible to do if he/she does not have big bu
dget. By Mutual Fund, fund can be collected in big amount to make it easier to d
iversify both for capital market instruments and money market; it means that the
fund is invested in various types of instruments such as deposit, stocks, and b
onds.
Second, Mutual Fund helps the investor to invest in capital market easier. Deter
mining which good stocks to buy is not easy. It needs specific knowledge and exp
eriences, which some investors don t have.
Third, time efficiency. Since the fund invested in the Mutual Fund is managed by
a professional fund manager, investors do not need to monitor their investment
performance all the time.
Like other investments, besides giving the investor the opportunity of profit, M
utual 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 diffic
ulty 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 Fund s wealth does not pay the indemnity or pay lower than
the loading value when unwanted events happens, such as the unability to fulfill
the liabilities of parties related to the Mutual Fund, brokerage, custodian ban
k, payment agent, or catastrophic events that cause the decrease of Net Asset Va
lue of Mutual Fund.
From the investment portfolio, mutual fund can be categorized as follow:
 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 mai
ntain 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 equiti
es. Because it invests in stocks, it has higher risks than the previous two type
s of Mutual Fund. However, it gives higher rate of return.

DERIVATIVES

Introduction
Derivative Security is a financial security whose value is derived from the valu
e of another security (underlying asset) such as equity or debt instrument. It c
an derive directly from an underlying asset or from the underlying asset s derivat
ives. Derivative can also be defined as a contract or agreement, which value dep
ends on the performance of an underlying asset.
In a more specific definition, derivative is a traded financial contract between
two or more parties to buy or sold an asset/commodity on an agreed time and pri
ce. The future value of the derivative is highly influenced by its underlying as
set in the Spot Market.
Financial Derivatives
Derivatives listed in the Exchange are financial derivatives, which derived from
financial instruments such as stock, bond, stock index, bond index, currency, i
nterest rate and other financial instruments. Financial derivatives are often us
ed by Investors and Issuers to perform hedging on their portfolios.
Jurisdiction
· Capital Market Law of the Republic of Indonesia No. 8 year 1995 conce
rning the Capital Market
· The Government Regulation of the Republic of Indonesia No. 45 year 19
95 concerning the Capital Market Organization
· The Decision of the Chairman of Bapepam No. Kep.07/PM/2003 dated Febr
uary 20, 2003 concerning Futures Contract on Security Index as Security
· The Bapepam Rules No. III. E. 1 dated October 31, 2003 concerning Fut
ures Contract and Option on Securities or on Securities Index
· Circular Letter from the Chairman of Bapepam No. SE-01/PM/2002 dated
February 25, 2002 concerning Futures Contracts Index in the Net Adjusted Working
capital Report of Securities Company
· Approval Letter of Bapepam No. S-356/PM/2004 dated February 18, 2004
concerning the Agreement of Foreign Futures Contracts (DJIA & DJ Japan Titans 10
0)
Several Derivative products traded at IDX:
1. Stock Option
Option is a contract that gives its Taker (the owner) the right (without obligat
ion) to buy or sell an asset at a certain price in a certain period of time. Opt
ion is officially traded for the first time at the Chicago Board Options Exchang
e (CBOE) in 1973.
Stock option is a contract that gives the Taker the right to buy (call option) o
r to sell (put option) an underlying stock (listed stock that becomes the basis
of 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 am
ount of an underlying security at a specified price within a specified time. On
the other hand, Put Option gives the Taker the right, but not obligation, to sel
l an underlying security.
American-type Options gives the Taker the chance to exercise his/her right durin
g any trading day on or before expiration, while European-type Option gives its
taker 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 Option
Trading Unit
1 contract = 10,000 Stock Options
Validation Period
1,2 and 3 months
Exercise
American method
(any time within its term of validity, but only on certain hours of the Bourse s t
rading 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 contract
WMA (weighted moving average)
is the average of the stock for 30 minuts, and will show up again every 15 minut
es
Strike Price
Is the exercise price of every single stock option series (7 series for Call Opt
ion and 7 series for Put Option) based on
Automatic exercise
Valid if:
call option, if WMA > 110% of the strike price
put option, if WMA < 90% of the strike price
The Schedule of Stock Option Trading
· Monday Thursday:
09.30AM 12.00PM and 13.30PM 16.00PM
· Friday:
09.30AM 11.30AM and 14.00PM 16.00PM
Exercise Schedule
Monday Thursday:
10.01AM 12.15PM and 13.45PM 16.15PM
Friday:
10.01AM 11.45AM and 14.15PM 16.15 PM
Premium
Traded through continuous auction market

2. Index Futures Contract (LQ45 Futures)

Futures is a contract obligates the buyer or the seller to purchase an underlyin

g financial instrument (index, stock, or bond, etc.) at a future date. Index Fut
ures are futures contracts that use stock indices as their underlying.
LQ45 Futures uses the LQ45 index, a well known index that serves as the benchmar
k of stocks in Indonesian Capital Market, as its underlying. In the fast growing
capital market in Indonesia, LQ45 index can be the most effective way in tracki
ng the stocks market of Indonesia in general.

Specifications of LQ45 Futures

Underlying
LQ45 Index
Multiplier
IDR 500,000 per point
Contract Months
Spot Month & 2nd Month, and the first quarter month (Quarter months : June and D
es)
Trading Hour
Monday - Thursday
Session 1 : 09.15 AM 12.00 PM
Session 2 : 13.30 PM 16. 15 PM
Friday
Session 1: 09. 15 AM 11.30 AM
Session 2: 14.00 PM 16. 15 PM
Last Trading Day
Last trading day in every contract s month
Initial Margin
IDR 3.000.000/ contract

3. Mini LQ Futures
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 has
smaller multiplier (IDR 100,000/point or 1/5 of the LQ Futures), thus resulted
in a lower transaction values, initial margin and transaction fee).
Mini LQ45 Futures is segmented for beginner and retail investors who would like
to practice the LQ Futures transaction in lower requirements, before start doing
transaction in LQ Index.
Specification of the Mini LQ Futures:

Underlying
LQ45 Index
Multiplier
IDR 100,000 per point
Contract Months
Spot Month & 2nd Month, and the first quarter month (Quarter months : June and D
es)
Trading Hour
Monday - Thursday
Session 1: 09.15 AM 12.00 PM
Session 2: 13.30 PM 16. 15 PM
Friday
Session 1: 09. 15 AM 11.30 AM
Session 2: 14.00 PM 16. 15 PM
Last Trading Day
Last trading day in every contract s month
Initial Margin
4% of contract value

4. LQ45 Futures Periodic

LQ45 Futures Periodic is a contract that is issued and expired on a certain trad
ing day.
There are several types of the LQ45 Futures Periodic:
1. Two (2) Weeks Periodic Contract. It is a contract which expiratio
n date falls on the last trading day of the second week after the issue of the c
ontract.
2. Weekly Periodic Contract (5 trading days). It is a contract which
expiration 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 e
xpiration date falls on the second trading day after the issue of the contract.

Specification of the LQ 45 Futures Periodic:

Underlying
LQ45 Index
Multiplier
IDR 500,000
Type of Contract:
Code of Contract:
a. Two (2) Weeks Periodic
LQ2WYYMDD
b. Weekly Periodic Contract (5 trading days)
LQ25DYYMDD
c. Daily Periodic Contract (2 trading day)
LQ2DYYMDD
Trading Hour
Monday - Thursday
Session 1: 09.15 AM 12.00 PM
Session 2: 13.30 PM 16. 15 PM
Friday
Session 1: 09. 15 AM 11.30 AM
Session 2: 14.00 PM 16. 15 PM
Price Fraction
0.05 point

5. Japan (JP) Futures

JP Futures gives investors the opportunities to invest globally and expand the c
ope of derivatives product in Surabaya Stock Exchange to be product that used as
a benchmark in the world class. It allowed investors to get benefit from the mo
vement of Japan market as the second most active market after the US market in t
he world.

Underlying
Dow Jones Japan Titan 100
Multiplier
IDR 50.000 per point
Contract Months
3 quarter contract months
(quarter month : March, June, Sept & Des
Trading Hour
Monday - Thursday
Session 1: 09.15 AM 12.00 PM
Session 2: 13.30 PM 16. 15 PM
Friday
Session 1: 09. 15 AM 11.30 AM
Session 2: 14.00 PM 16. 15 PM
Last Trading Day
The second Thursday in every contract month
Initial Margin
4% of contract value

ETF or Exchange Traded Fund can simply be defined as mutual fund traded in the E
xchange. Just like mutual fund, ETF is a Collective Investment Contract, but sim
ilar to shares, its investment unit is listed and traded in the Exchange. Like c
onventional mutual fund, ETF also uses an Investment Manager and Custodian Bank.
One type of ETF developed in the Indonesia s Capital Market is the Index Mutual fu
nd, where the underlying index used is the LQ45 index.
The difference between ETF and Open-Ended Mutual Fund:
FEATURE

ETF

OPEN-ENDED
MUTUAL 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/off
er is adjusted to the market s order.

Decided by the Net Asset Value of the mutual fund

Price Announcement

Displayed continuously by the Exchange during the trading hours.

Announced one time by the Investment Manager based on the Net Asset Value s calcul
ation.
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 Sponsor
s
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)

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Background
Due to the passion to improve Indonesia s Capital Market by finding new competent
investors and spreading the knowledge and information of share investment, the I
ndonesia Stock Exchange organizes many education programs to educate potential i
nvestors about Capital Market. One of them is the IDX Regular Education Program
that is organized every year. This program serves as an investment media and a w
ay to attract more people to invest in the Capital Market.
IDX Regular Education Program is delivered as simple as possible and adjusted to
the background and profile of the audience in general. Speakers of this program
are professional practitioners in the Capital Market who come from the IDX, Ind
onesian Clearing and Guarantee Corporation (KPEI), Indonesian Central Securities
Depository (KSEI) and Danareksa.
The Purpose and Benefits
IDX Regular Education Program aims to arouse public interest in learning share i
nvestment thoroughly, so that they will become competent investors, and at the s
ame time, attract new investors, either retailed ones or institutionals.
The Target
The participants of this program are entrepreneurs, executives, academics, house
wives, retirements, and others, especially those who have not yet invest in the
Capital 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 e
very Wednesday.
Time : 09:00 AM 11:00 PM
Place
:

The Gallery of Indonesia Stock Exchange

The Indonesia Stock Exchange Building , 2nd Tower, 1st floor
Jl. Jend. Sudirman Kav 52-53 Jakarta
Material
:

1st session : The Structure of Indonesia s Capital Market

2nd session : Basic Knowledge of Securities
3rd session : Mutual Fund
4th session : The Demo of Securities Trading Simulation

2. Intermediate Education Program is the level for participants who have comp
leted the Basic level and are interested to learn more on share investment. It c
onsists of four sessions, and each session is held on every Wednesday.

Time : 13:30 PM 16:00 PM

Place
:

The Gallery of Indonesia Stock Exchange

The Indonesia Stock Exchange Building , 2nd Tower, 1st floor
Jl. Jend. Sudirman Kav 52-53 Jakarta
Material
:

1st session : Mechanism of Securities Transaction

2nd session : Fundamental Analyses
3rd session : Technical Analyses
4th 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 ins
trument in Capital Market. It consists of four sessions, and each session is hel
d on every Wednesday.

Time : 16:00 PM 18:00 PM

Place
:

The Gallery of Indonesia Stock Exchange

The Indonesia Stock Exchange Building , 2nd Tower, 1st floor
Jl. Jend. Sudirman Kav 52-53 Jakarta
Material
:

1st session : Bonds

2nd session : Exchange Traded Fund (ETF)
3rd session : Option
4th 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
To learn further about IDX Regular Educational Program, please contact:
Indonesia Stock Exchange
Jakarta:
Corporate Secretary
Phone : (+62-21) 515-0515
ext.: 7706 (Yane), 7708 (Taufiq), Ajeng (7712)
Fax : (+62-21) 515-0330,
E-mail : yane.mulfiani@idx.co.id; taufiq.rochman@idx.co.id, ajeng.titie@idx.co
.id

Surabaya:
IDX Information and Education Center
Phone : (+62-31) 534-0888
ext.: 300 (Esti), 303 (Jamil), 335 (Nunung), 334 (Bambang), 323 (Rudi)
Fax : (+62-31) 534-2888
E-mail : esti.firdani@idx.co.id; mochamad.jamil@idx.co.id; nur.harjantie@idx.c
o.id; bambang.santoso@idx.co.id; rudy.yulianto@idx.co.id
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The establishment of IDX Corners is to introduce the Capital Market as early as

possible to the academic world. Currently, the establishment of IDX Corners is u
sing the concept of 3 in 1 (co-operation between JSX, University and Security Co
mpany) 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 can
understand the Capital Market better.
IDX Corners have all the publications on Capital Market published by the IDX, in
cluding the Law of capital Market. Information and IDX data can be used by the a
cademia for academic purpose, not for commercial purpose of share trading.
It is hoped that through this cooperation, the information of Capital Market wil
l be spread out, and that the academics, economic practitioners, investors, capi
tal 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 the
academics, so that the academics do not only know about the capital Market from
the theoretical side, but also are able to practice it.
For the universities, IDX Corners are strategic alliances to Capital Market prac
titioners (IDX, Exchange Members, and Vendor Data) and a way to improve their Br
and Name and value of the University.
For the Data Vendor, IDX Corners are product promotion Medias among the academic
s, 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 opportu
nity of internship and facilitate investment clubs.
The university must provide the space and infrastructure needed for the gallery
of the IDX Corners and Capital Market Lab. It includes providing proper PCs acc
ording to the necessity (minimum of 3 PCs: 2 for the Realtime Data and 1 for the
operation of IDX Corners).
The Securities Company has to give educational and socialization service of Capi
tal 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 termi
nal in the Capital Market Lab, giving educational service and socialization of R
ealtime 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 university s 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 IDX
Corner.
Step III: Agreement Signing and Inauguration of the IDX Corner
* IDX Corner is ready to open any time after the cooperation agreement and a
ll other requirements have been fulfilled.
Download:
>> IDX Corner Guideline
>> IDX Corner Proposal (sample)