The 5 Best Stocks for Beginners in Indonesia
This article acts as a guide for novice investors looking to explore the Indonesian stock market. It highlights the importance of meticulous planning and comprehension in their investment journey.
The main focus is identifying 5 beginner-friendly stocks, elucidating the criteria for selecting them, and providing detailed assistance through each step of the investing process. Furthermore, we analyze potential risks and rewards associated with stock investments.
In this in-depth guide, you’ll read about the following:
- What are the Best Stocks for Beginners in Indonesia – a List
- The Best Indonesian Shares to Buy
- How to Invest in the Indonesian Stock Market
- What is the Best Way to Invest in the Indonesian Stock Exchange?
- The Best Stocks for Beginners with little money
and much, MUCH more!
The 5 Best Stocks for Beginners in Indonesia – a Comparison
| 🔎 Stock | 🅰️ IDX | 🅱️ Price |
| 📈 Singaraja Putra Tbk | SINI | 1,375 IDR |
| 📉 Wismilak Inti Makmur TBK | WIIM | 1,885 IDR |
| 📊 Alakasa Industrindo | ALKA | 945 IDR |
| 📈 Bayan Resources Tbk | BYAN | 19,975 IDR |
| 📉 Astra Otoparts Tbk | AUTO | 3,040 IDR |
The 5 Best Stocks for Beginners in Indonesia (2025)
- ☑️ Singaraja Putra Tbk. (IDX: SINI) – Overall, the Best Indonesian Stock to invest in
- ☑️ Wismilak Inti Makmur TBK (IDX: WIIM) – Offers an attractive dividend yield of 4.46%
- ☑️ Alakasa Industrindo (IDX: ALKA) – Long-standing Market Presence and Reputation
- ☑️ Bayan Resources Tbk (IDX: BYAN) – Prominent Participant in the Energy Sector
- ☑️ Astra Otoparts Tbk (IDX: AUTO) – Renowned for its market dominance
Singaraja Putra Tbk. (IDX: SINI)
PT Singaraja Putra Tbk is a well-known company in Indonesia’s wood processing industry, specializing in selling processed wood products. It also runs Imperial Singaraja, a modern hostel in Lippo Cikarang.
The company’s stability and diverse business interests make it an excellent choice for new investors seeking exposure to Indonesia’s thriving wood processing and hospitality sectors.
| 💴 Price | 1,375 IDR |
| 🏦 Industry | Hotels/Resorts/Cruise Lines |
| 📌 Sector | Consumer Services |
| 💵 Market Capitalisation | 666.1 billion IDR |
| 💶 Price-to-Earnings Ratio (TTM) | 260 |
| 💷 Net Income | 4.9 billion IDR |
| 💰 Basic Earnings per Share (EPS) | 5 IDR |
| 📈 Revenue | 413.6 billion IDR |
| 📉 5-Year Performance | 651.37% |
| 📊 1-Year Performance | 409.26% |
| 💹 YTD Performance | 19.05% |
Wismilak Inti Makmur TBK (IDX: WIIM)
PT Wismilak Inti Makmur Tbk, a prominent cigarette manufacturer in Indonesia, is highly acclaimed for its exceptional performance within the tobacco sector.
Moreover, it offers an attractive dividend yield of 4.46%, comfortably supported by earnings.
This unwavering commitment to consistent dividends makes PT Wismilak Inti Makmur Tbk an appealing choice for individuals seeking reliable income sources, especially those new to investing.
| 💴 Price | 1,885 IDR |
| 🚬 Industry | Tobacco |
| 📌 Sector | Consumer Non-Durables |
| 💵 Market Capitalisation | 3.5 trillion IDR |
| 💶 Price-to-Earnings Ratio (TTM) | 10 |
| 💷 Net Income | 249.3 billion IDR |
| 💹 Basic Earnings per Share (EPS) | 155 IDR |
| 📈 Dividend Yield | 4.04% |
| 📉 Revenue | 3.7 trillion IDR |
| 📊 5-Year Performance | 797.62% |
| 📍 1-Year Performance | 281.58% |
| ↪️ YTD Performance | 194.53% |
Alakasa Industrindo (IDX: ALKA)
Since 1972, PT Alakasa Industrindo Tbk has been a key player in the materials sector, focusing on the aluminum industry. Its long-standing market presence and reputation make it a safe bet for newcomers investing in Indonesia’s thriving materials sector.
| 💴 Price | 945 IDR |
| ⚙️ Industry | Aluminium |
| 📌 Sector | Non-Energy Minerals |
| 💵 Market Capitalisation | 461.975 billion IDR |
| 💶 Price-to-Earnings Ratio (TTM) | 10 |
| 💷 Net Income | 48 billion IDR |
| 📈 Basic Earnings per Share (EPS) | 100 IDR |
| 📉 Revenue | 4.1 trillion IDR |
| 📊 5-Year Performance | 208.82% |
| 💹 1-Year Performance | 223.63% |
| ▶️ YTD Performance | 255.26% |
Bayan Resources Tbk (IDX: BYAN)
PT Bayan Resources Tbk, a prominent participant in the energy sector operating within Kalimantan, actively engages in open-cut mining and coal sales.
With its vast operations and strong dedication to sustainability practices, newcomers seeking valuable experience within Indonesia’s energy industry will greatly benefit from aligning themselves with this exceptional company.
| 💴 Price | 19,975 IDR |
| 📌 Industry | Coal |
| 📍 Sector | Energy Minerals |
| 💵 Market Capitalisation | 699.1 trillion IDR |
| 💶 Price-to-Earnings Ratio (TTM) | 25 |
| 💷 Net Income | 32.3 trillion IDR |
| 📈 Basic Earnings per Share (EPS) | 1,000 IDR |
| 📉 Revenue | 69.8 trillion IDR |
| 📊 5-Year Performance | 1003.59% |
| 💹 1-Year Performance | 198.25% |
| ▶️ YTD Performance | -4.88% |
Astra Otoparts Tbk (IDX: AUTO)
Established in 1976, PT Astra Otoparts Tbk is a prominent entity within the Automotive Parts and Equipment sector.
Renowned for its market dominance, this company specializes in manufacturing, selling, distributing, and exporting spare parts catering to two- and four-wheel vehicles.
With an impressive array of products combined with an unwavering commitment to maintaining quality standards, it is no surprise that investing in Indonesia’s flourishing automotive industry would be deemed wise by prospective entrants who opt for PT Astra Otoparts Tbk.
| 💴 Price | 3,040 IDR |
| 📌 Industry | Autoparts: OEM |
| 📍 Sector | Producer Manufacturing |
| 💵 Market Capitalisation | 14.7 trillion IDR |
| 💶 Price-to-Earnings Ratio (TTM) | 10 |
| 💷 Net Income | 1.3 trillion IDR |
| 📈 Basic Earnings per Share (EPS) | 320 IDR |
| 📉 Dividend Yield | 3.51% |
| 📊 Revenue | 18.5 trillion IDR |
| 💹 5-Year Performance | 103.34% |
| ▶️ 1-Year Performance | 162.07% |
| ⏩ YTD Performance | 108.22% |
What makes these stocks the best for beginners?
These stocks show a history of great performance, decent EPS, and future growth.
How do I know an Indonesian stock is worth the investment?
If the company is stable, has a history of good performance, has a good dividend yield, and has decent EPS, it might be worth the investment.
Understanding the Indonesian Stock Market
An Overview of the Indonesian Stock Market
The main securities exchange in Indonesia is the Indonesian Stock Exchange (IDX), also known as the Indonesia Stock Exchange.
Its establishment on August 10, 1977, by President Soeharto marked a significant turning point for the nation’s capital market. The IDX oversees all securities transactions conducted within Indonesia.
With representation from various industries, numerous enterprises reside on the IDX, providing local and international investors with diverse investment opportunities.
Monitoring the performance of all listed businesses on this exchange is an essential stock market index called the Jakarta Stock Price Index (JCI). Serving as a crucial benchmark for evaluating overall performance in the Indonesian stock market, JCI holds great significance.
Key Factors Influencing the Indonesian Stock Market
Several significant variables have an impact on the Indonesian stock market:
- ✅ Economic Indicators: The IDX, like any other stock market, is impacted by economic indicators such as GDP growth, inflation rates, and unemployment rates. These indicators give insight into the country’s general economic health, influencing investor mood and stock market performance.
- ✅ Government Policies: Fiscal and monetary policies, in particular, may substantially influence the stock market. Changes in interest rates or tax laws, for example, might have an impact on investment choices.
- ✅ Global Market Trends: As a component of the global financial system, the IDX is impacted by international market trends. Changes in oil prices, swings in key global currencies, or big events in major economies such as the United States or China can influence the IDX.
- ✅ Sector Performance: Individual sector performance in the IDX might impact the whole market. For example, the whole market may climb if the energy sector has a strong expansion.
Investor sentiment influences stock market movements and may be impacted by various variables ranging from economic data to geopolitical events. Positive mood may encourage purchasing activity, leading stock prices to rise, while negative sentiment can increase selling pressure, causing stock prices to fall.
How can I start trading Indonesian stocks?
You can start by registering an account with a local stockbroker in Indonesia, researching stocks, and purchasing when you have a strategy in place.
Can US traders invest in the Indonesian stock market?
Yes, anyone can invest in the Indonesian stock market.
Criteria for Selecting Beginner-Friendly Stocks
Investing in the Indonesian stock market can be lucrative, but it requires careful consideration and analysis, especially for novices in the investment world.
Understanding the criteria for selecting stocks that align with your financial objectives and risk tolerance is fundamental to successful investing.
Focusing on the stability of the stock, dividend yield, the company’s financial health, and market capitalization, this section examines the essential criteria for selecting beginner-friendly stocks on the Indonesian stock market.
Stability of the Stock
Stability in stocks pertains to the degree of price volatility. In the Indonesian market, highly stable stocks generally encounter fewer extreme price changes, thus minimizing investment risk.
For inexperienced investors, opting for stable stocks can be a favorable strategy as it lowers the chances of substantial losses.
Assessing stability may involve examining a stock’s beta value—measuring its volatility against the Indonesian market. A beta below 1 suggests lower volatility than the market, while a beta above 1 indicates heightened instability.
Dividend Yield
The dividend yield represents the percentage of an Indonesian company’s annual dividend payout in relation to its stock price. This ratio is calculated by dividing the per-share annual dividends by the share price.
Beginner investors might find Indonesian stocks with a high dividend yield appealing as they offer consistent income alongside potential capital gains.
Nonetheless, it is crucial to remember that a high dividend yield can occasionally indicate financial difficulties within a company; therefore, other financial indicators should also be considered.
Company’s Financial Health
When investing in Indonesian stocks, evaluating a company’s financial health is essential. Strong financial health increases a company’s ability to withstand economic downturns and decreases the likelihood of bankruptcy.
Financial statements, including the balance sheet, income statement, and cash flow statement, allow novices to evaluate a company’s financial health. Key indicators of financial health include a solid balance sheet with manageable debt levels, consistent growth in earnings, and positive cash flow.
Market Capitalisation
Market capitalization, also known as market cap, represents the overall value of a company’s stock based on outstanding shares. To calculate it, one multiplies the current market price per share by the total number of outstanding shares. I
In Indonesia’s marketplace, companies are often categorized into large-cap, mid-cap, or small-cap stocks. Large-cap stocks tend to be less volatile and risky than their smaller counterparts – making them suitable for inexperienced investors.
However, they may have lower growth potential than small-caps, which can offer higher returns but come with increased risk factors.
Are the biggest Indonesian companies the best for investment?
No, not always. There are several factors to consider when evaluating a company and you cannot only focus on its income and market capitalization.
Does a low share price in Indonesia mean the company is not a good investment?
No, a low share price does not mean the company is a poor investment option. Often there are undervalued companies in the stock market with great investment potential.
How to Start Investing in These Stocks
It can be a fruitful adventure if you are considering investing in the Indonesian stock market. However, grasping the procedure is crucial for success.
Allow us to guide you through the initial stages of this investment journey by explaining how to begin opening a brokerage account, familiarising yourself with stock trading platforms, and undertaking your first share purchase.
Opening a Brokerage Account
The initial action is establishing a brokerage account to commence investing in stocks. This particular type of financial account enables individuals to purchase and sell stocks and other monetary instruments.
In Indonesia, various local and international brokerage firms exist for one’s selection. When opting for a broker, it is essential to contemplate fees, customer service quality, and availability of research materials and educational resources.
Following the decision-making process of selecting an appropriate broker comes the completion of an application form and the submission of mandatory identification documents for successfully opening an account.
In addition, it becomes necessary to fund your newly opened trading account upon its initiation stage so that you may begin engaging actively in investment activities within the stock market domain
Understanding Stock Trading Platforms
After setting up a brokerage account, you must familiarise yourself with the stock trading platform. This software is a central hub for buying and selling stocks, offering various tools and features to analyze stocks, track market trends, and execute trades.
Take some time to explore the platform’s functionalities. Several brokers offer demo accounts that allow you to practice trading using virtual funds – an ideal way to get acquainted with the platform before engaging in real money transactions.
Making Your First Purchase
Once you have set up your brokerage account and become proficient with the trading platform, you can initiate your first stock acquisition. You can follow these steps to buy your first stocks in Indonesia:
- ✅ Educate yourself on stock investment and identify and evaluate your investment objectives and risk tolerance levels.
- ✅ Conduct thorough research into the Indonesian stocks that pique your interest.
- ✅ Scrutinize their financial performance, standing in the industry, and any recent news or events that may hold sway over their stock prices.
- ✅ After selecting a preferred stock for purchase, proceed by placing a trade through your trading platform of choice, typically that offered by your stockbroker.
- ✅ Ensure that you specify the desired number of shares and the type of order requested when making this decision.
- ✅ Remember that investing in stocks carries inherent risks; therefore, you must proceed carefully by only investing funds within an affordable range for potential loss purposes.
Can I trade Indonesian stocks with Exness?
No, you cannot. Exness does not offer Indonesian stocks but offers international share CFDs to Indonesians along with an IDR-denominated account.
How do I find a good stockbroker in Indonesia?
You must search, read online reviews, test the broker’s offer and platform, speak to others, and compare brokers to find one that suits your objectives.
Risks and Rewards of Stock Investing in Indonesia
Like any other stock market, investing in the Indonesian stock market comes with risks and rewards.
It is crucial to comprehend these aspects as they can help you make wise decisions and effectively handle your expectations. Now, let’s delve into the potential hazards and benefits associated with stock investment, specifically for beginners in Indonesia.
Potential Risks for Beginners
- ✅ Market Volatility: Prices in the stock market can fluctuate owing to various variables such as economic data, political events, and company news. This volatility might result in substantial losses, particularly if you have to sell your stocks during a market slump.
- ✅ Currency Risk: There is a risk linked with currency volatility for overseas investors. If the Indonesian Rupiah falls in value against your home currency, your investment profits may suffer when converted back to your home currency.
- ✅ Regulatory Risk: Changes in government policies or regulations can impact the performance of specific industries or businesses. For example, tax legislation or environmental rule changes might impact a company’s profitability.
- ✅ Company-Specific Risk: Every business has unique risks relating to its operations, management, and industry. Poor management actions, for example, can cause the company’s stock price to fall.
Potential Rewards and Growth Opportunities
- ✅ Capital Gains: The possibility for capital gains is one of the primary benefits of stock investing. If the price of the stocks you buy rises over time, you can sell them for a profit.
- ✅ Dividend Income: Many Indonesian corporations give dividends to their shareholders. In addition to any potential capital gains, this can provide a consistent income stream.
- ✅ Economic Development: Indonesia has one of the world’s fastest-expanding economies. This expansion can create huge opportunities for corporations operating in the country, leading to greater stock values.
- ✅ Portfolio Diversification: Investing in Indonesian equities can help diversify your portfolio, especially if you already have investments in other nations or areas.
Is share trading dangerous?
Yes, share trading is risky, much like all other types of investment. Therefore, you should never risk more than you can afford to lose.
Can share trading in Indonesia make me rich?
Share trading in Indonesia is not a get-rich-quick scheme. Instead, you should focus on building long-term wealth, diversifying your portfolio, and analyzing the market for profitable opportunities.
The Best Share CFD Brokers in Indonesia
In this article, we have listed the best brokers that offer Share CFDs and other trading solutions and opportunities to traders in Indonesia. In addition, we have further identified the brokers that offer additional services and solutions to traders.
Best MetaTrader 4 / MT4 Share CFD Broker in Indonesia – AvaTrade
Overall, AvaTrade is the best MT4 Share CFD Broker in Indonesia. Indonesian traders can access international stock CFDs when they sign up with AvaTrade on MetaTrader 4, including Apple, Google, and Netflix.
Best MetaTrader 5 / MT5 Share CFD Broker in Indonesia – Pepperstone
Overall, Pepperstone is the best MetaTrader 5 Share CFD Broker in Indonesia. All live trading accounts on Pepperstone are equipped with MT5. Pepperstone is a broker Indonesian traders can trust to provide competitive rates and cutting-edge features.
Best Share CFD Broker in Indonesia for beginners – InstaForex
Overall, InstaForex is the best Share CFD Broker in Indonesia for beginners. For new traders, InstaForex offers Cent Accounts. InstaForex provides a demo account for new Indonesian traders and a plethora of educational materials.
Best Low Minimum Deposit Share CFD Broker in Indonesia – HFM
Overall, HFM is the best Low Minimum Deposit Share CFD Broker in Indonesia. With a 5 USD / 75,500 IDR deposit, Indonesian traders can open an account with HFM. Then, with the help of leverage, Indonesian traders can make larger trades and investigate more market possibilities.
Best ECN Share CFD Broker in Indonesia – RoboForex
Overall, RoboForex is the best ECN Share CFD Broker in Indonesia. RoboForex is well-known for its high liquidity and rapid execution speeds. RoboForex gives Indonesian traders a maximum leverage of 1:2000 with spreads starting at 0 pips.
Best Islamic / Swap-Free Share CFD Broker in Indonesia – Oanda
Overall, OANDA is Indonesia’s best Islamic / Swap-Free Share CFD Broker. OANDA provides a Swap-Free Account to its Muslim clientele to comply with Sharia law.
This suggests that Muslim traders could benefit from trading circumstances tailored to their requirements and goals without paying overnight costs.
Best Trading App in Indonesia – Trade Nation
Overall, Trade Nation is the Trading App in Indonesia. The Trade Nation app may be downloaded for free on both Apple and Google Play stores. With the Trade Nation app, Indonesian traders can keep track of their open positions and get real-time market information.
Best Share CFD Rebates Broker in Indonesia
Overall, XM is the Best Share CFD Rebates Broker in Indonesia. Traders can earn lucrative rebates of up to $25 when they partner with XM. Furthermore, those who qualify as second-tier referrals can earn up to 10% commission with XM.
Best IDR Trading Account Share CFD Broker in Indonesia – Exness
Overall, Exness is Indonesia’s best IDR Trading Account Share CFD Broker. Traders in Indonesia can open an IDR-denominated account at Exness, one of several account types available to both novice and experienced traders.
Best Lowest Spread Share CFD Broker in Indonesia – LiteFinance
Overall, LiteFinance is the best lowest-spread Share CFD Broker in Indonesia. LiteFinance traders had access to both market execution and two separate retail accounts. Indonesian traders can trade on LiteFinance with costs as low as 0.0 pips and $0.25 per share.
Best Nasdaq 100 Share CFD Broker in Indonesia – JustMarkets
Overall, JustMarkets is the best Nasdaq 100 Share CFD Broker in Indonesia. The Nasdaq 100 is among the many indexes offered as Contracts for Difference (CFDs) by JustMarkets.
Furthermore, traders can register flexible account types with low and competitive spreads, negative balance protection, and leverage up to 1:3000.
Best Volatility 75 / VIX 75 Share CFD Broker in Indonesia – IC Markets
Overall, IC Markets is Indonesia’s best Volatility 75 / VIX 75 Share CFD Broker. Futures contracts on the CBOE Volatility Index are available on IC Markets for traders in Indonesia.
IC Markets is a major true ECN broker on the market. IC Markets ensures that all Indonesian traders can access large amounts of liquidity and competitive spreads.
Best NDD Share CFD Broker in Indonesia – BDSwiss
Overall, BDSwiss is the best NDD Share CFD Broker in Indonesia. All BDSwiss orders are routed to established market makers for execution. BDSwiss is well regarded as one of the top fully licensed brokers with an active social media presence.
Best STP Share CFD Broker in Indonesia – ACY Securities
Overall, ACY Securities is the best STP Share CFD Broker in Indonesia. ACY Securities is a premier NDD broker offering STP execution over an electronic communication network. Furthermore, ACY Securities receives zero-pip spreads from sixteen foreign banks and liquidity providers.
Best Sign-up Bonus Share CFD Broker in Indonesia – SuperForex
Overall, SuperForex is the best sign-up bonus Share CFD Broker in Indonesia. SuperForex gives new traders who validate their accounts a $88 no-deposit bonus for Share CFD trading.
In Conclusion
According to our research, investing in the stock market, especially in a vibrant and rising economy like Indonesia, offers many opportunities.
However, it presents its own set of obstacles, particularly for novices. Understanding the complexities of the market, from the forces that drive it to the criteria for selecting appropriate stocks, is critical for making sound investment decisions.
Because of their stability, dividend yields, and great financial health, the equities we’ve reviewed are a fantastic place to start for new investors. However, traders must realize that investing always entails risks.
Therefore, market volatility, currency risk, regulatory changes, and company-specific risks must all be considered. To begin your investment experience, open a brokerage account, learn about the trading platform, and make your first purchase. It is a process that takes careful consideration, investigation, and continual education.
However, with time and effort, the rewards can be substantial, ranging from capital gains and dividend income to economic development and portfolio diversification benefits.
Overall, in our experience, investing in the Indonesian stock market can be a lucrative experience. It’s a difficult path to navigate, but the appropriate knowledge and strategy can lead to financial growth and success.
Addendum/Disclosure: No matter how diligently we strive to maintain accuracy, the financial markets are volatile and could shift and change at any given time, even if the information supplied is correct at the time of going live.
Frequently Asked Questions
What is the Indonesian Stock Market?
The Indonesian Stock Exchange (IDX), often known as the Indonesia Stock Exchange, is Indonesia’s principal securities exchange, housing many companies from many sectors and offering diverse investment options.
What are the best stocks for beginners in Indonesia?
Because of their stability, dividend yields, and solid financial health, some of the finest stocks for beginners include PT Singaraja Putra Tbk, Wismilak Inti Makmur TBK, Alakasa Industrindo, Bayan Resources TBK, and Astra Otoparts TBK.
How can I start investing in Indonesian stocks?
Beginners can begin by opening a brokerage account, learning how to use the broker’s stock trading software, and making their first stock purchase.
What are the risks of investing in stocks?
Risks include market volatility, currency, regulatory, and company-specific risks, while rewards include potential capital gains, dividend income, economic growth, and portfolio diversification.
What are the rewards of investing in stocks?
Some rewards include capital gains, diversification, economic growth, and dividend income.
What factors should I consider when selecting stocks?
You should consider the stock’s stability, dividend yield, financial health, and market capitalization.
What factors influence the Indonesian Stock Market?
Economic indicators, government policies, global market movements, sector performance, and investor mood all impact the IDX.
