March 3, 2022
JAKARTA – Stock market investing used to be a niche pursuit, but as it gains popularity among everyday people, experts warn of the risks.
Not long ago, investment was an intimidating prospect for regular Indonesians. The specialized knowledge and the lack of resources to develop it combined with horror stories of investors losing everything in a matter of minutes deterred many would-be dabblers.
In recent years, however, stock and cryptocurrency markets have gained significant popularity. The last two years in particular have seen an increase in retail investors, particularly of the millennial generation.
In fact, the number of stock market investors in the country has increased by some 65.74 percent over the course of the pandemic. CNBC reported that in September of last year, a record 6.43 million Indonesians were invested in the stock market.
Cryptocurrency markets have seen similar growth. Last October, bisnis.com reported that 9.5 million people were invested in crypto.
What accounts for this rise?
Ease and inclusivity
Investment apps have been the gateway into trading for many retail investors.
Bayu from Jakarta, who works at a financial firm and has elected to use a pseudonym for this article, said he had begun participating in an algorithmic trading program in 2020, after a close friend had bragged about a daily profit of 0.4 to 1 percent. Prior to joining the trading app, Bayu had never done any retail…
