JAKARTA - Tempo.co and Idnfinancials.com launched the Tempo-Idnfinancials52 Index, consisting of 52 issuers with the most qualified financial performance on the Indonesia Stock Exchange (IDX) on Friday, (23/6). This index is expected to be a reference for young investors, from Generation Z and Millennials who wish to invest in the capital market.

Anna Marwiyati, Director of Idnfinancials.com said the number of investors in the capital market during COVID-19 showed significant growth. Data from the Indonesian Central Securities Depository (KSEI), in 2020 the number of investors in the capital market was recorded at 3.88 million, soaring to 7.48 million in 2021, and to 10.31 million in 2022.

"Until May 2023, the number of investors in the capital market reached 11.06 million, up 7.28% from the end of last year. In terms of age, 57.81% of investors in the capital market were under the age of 30 with total assets of IDR 49.22 trillion," she said.

According to her, the above data shows an increasing trend in the number of investors, including in terms of age which is dominated by young people (Generation Z) born under 1997. This age group is known as the digital generation who are literate in technology, independent and have a global perspective.

Marwiyati said that in response to these developments, Tempo-Idnfinancials52 presented a credible index, which was compiled based on a number of criteria, including market capitalization (market cap), frequency and volume of shares traded per day, amount of free float, and number of shareholders. "The index only includes issuers that were listed before 2019," she said.

From measuring these criteria, Tempo-Idnfinancials52 produced four index categories, namely: Main Index 52, High Dividend Index 52, High Growth Index 52, and Big Market Cap Index. The Main Index with the lowest market cap of IDR 21 trillion and the highest is IDR 1.02 quadralion. The market cap on this index represents 66.75% of the total market cap on the IDX; High Dividend Index, a collection of 52 issuers with a maximum dividend yield of 24.21% and a market cap of 60% of the total market cap on the IDX; The High Growth Index consists of 52 issuers, the maximum net profit growth is 237.19% with a market cap of 56% of the total market cap; The Big Market Cap Index consists of 52 issuers with the lowest market cap of IDR 19 trillion, the number of shareholders per issuer is above 3,000 and the market cap is 69.08% of the total market cap on the IDX.

Tomi Aryanto, Chief Partnership Officer of Tempo Digital, said that the financial sector (banking) is the largest contributor in each index category because it has a larger market cap among other business sectors, followed by coal mining and energy, consumer goods, and infrastructure including telecommunications.

The Tempo-Idnfinancials52 index, abbreviated as Index52, will be displayed on the indeks52.id website. This site contains information on stock movements in graphical form from all index constituents as well as a brief explanation on the preparation of Index criteria52. Issuers can also subscribe to corporate business service packages from Tempo and IDNFinancials through the website. (LK/LM)