Rundown of Business Areas of Organizations Recorded on the IDX
There are 9 major business sectors of companies listed on the IDX, these business sectors are separate for each company’s industry so that the classification is easier. Then, what are the business sectors of companies listed on the IDX? Check out this review to find out.
On the Indonesian Stock Exchange ( IDX ), there are hundreds of companies listed on the capital market. So that investors or shareholders can easily manage portfolio and risk management, the company is then divided into 9 stock sectors. This division is based on related company data to divide it based on the type of industry.
To find out the nine sectors and their sub-sectors, see the following review:
Contents
Business Sectors, Listed Companies on the IDX and it’s Sub-Sectors
1. Agriculture (Agricultural Sector)
2. Mining (Mining)
3. Basic Industry & Chemicals (Basic Industry & Chemicals)
4. Various Industries or Miscellaneous Industry
5. Consumer Goods Industry Sector
6. Property Building, Real Estate, and Building Construction
7. Infrastructure, Utilities, and Transportation
8. Finance Sector (Financial)
9. Trade, Service, and Investment Sector (Trade, Services, and Investment)
Promising Business Sector in Indonesia
1. Hotels and Tourism
2. Trade and Retail Sector
3. Online Sales
4. Infrastructure and Construction
5. Factory and Agriculture
How to Get Profits from Stock Investment
1. Dividends
2. Capital Gains
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Business Sectors Listed Companies on the IDX and Their Sub-Sectors
1. Agriculture (Agricultural Sector)
This sector includes many businesses in the fields of plantations, food crops, animal husbandry, forestry, associations, to services related to the agricultural industry. Related sub-sectors include food crops, plantations, animal husbandry, fisheries, forestry and other types of agriculture
2. Mining (Mining)
This industry places more emphasis on companies engaged in the mining sector, such as oil mining, coal mining, quarrying of rocks, sand or clay, mineral mining, to asphalt and limestone mining. Sub-sectors related to the mining sector are:
Coal Mining (coal mining)
Crude Petroleum & Natural Gas Production (oil and gas mining)
Metal and Mineral Mining (mining of metals and other minerals)
Land / Stone Quarrying (mining rocks)
And other mining
3. Basic Industry & Chemicals (Basic Industry & Chemicals)
As the name suggests, this sector uses companies for classification in the field of basic materials as well as chemicals. Sub-sectors related to this sector are:
Cement
Ceramics, Glass, Porcelain (Ceramics, glass and porcelain)
Metal And Allied Products (Metal and the like)
Chemicals
Plastics and Packaging
Animal Feed
Wood Industries (timber and its processing)
Pulp and Paper
And other sub-sectors
4. Various Industries or Miscellaneous Industry
Industries that are classified in this sector are businesses in the manufacture of machines, both heavy machines, light machines, to their supporting components. Sub-sectors related to this sector are:
Machinery And Heavy Equipment (Machine and heavy equipment)
Automotive and Components (Automotive and components)
Textiles and Garments
Footwear
Cables
Electronics
And other sub-sectors
5. Consumer Goods Industry Sector
This sector separates companies engaged in processing basic or semi-finished materials into products that can be consumed by the public. Sub-sectors related to this sector are:
Food And Beverages
Tobacco Manufacturers (Cigarettes)
Pharmaceuticals (Pharmacy)
Cosmetics and Household (Cosmetics and household goods)
Houseware (household equipment)
And other sub-sectors
6. Property Building, Real Estate, and Building Construction
From the name of the sector, of course the industries belonging to the property, real estate and building construction sectors are companies whose business activities cover matters relating to property and buildings. Sub-sectors related to this sector are:
Property and real estate
BuildingConstruction
And other sub-sectors.
7. Infrastructure, Utilities, and Transportation
Companies belonging to this sector are those involved in the supply of energy, buildings and infrastructure, telecommunications, and supporting services. Sub-sectors related to this sector are:
energy
Toll Road, Airport, Harbor and Allied Products (Toll roads, ports, airports, and the like)
Telecommunication
Transportation
Non-Building Construction
and other sub-sectors.
8. Finance Sector (Financial)
The financial sector or often known as the financial sector is a company engaged in the financial world. Of course, in this sector, matters such as going concern audits, financial reports, and other matters related to money are very important to observe. The sub-sectors in this sector include:
Bank
Financial Institutions
Securities Company
Insurance
mutual funds
And other sub-sectors
9. Trade, Service, and Investment Sector (Trade, Services, and Investment)
This sector includes various trade businesses, both large and small parties. In addition, industries belonging to this sector include services such as restaurants, hotels, to tourism. The sub-sectors related to this sector include:
wholesalers
Retail Trade
Restaurants, Hotels and Tourism
Advertising, Printing & Media (Advertising, printing and media)
Healthcare (Health)
Computer And Services (Computer services and devices
Investment Company
And other sub-sectors
Knowing the business sector of a company listed on the IDX is important for your portfolio or if you want to diversify stocks to minimize possible losses. As you know, stocks are indeed a fairly popular investment instrument.
Promising Business Sector in Indonesia
So, after we have discussed several IDX sectors, below we will discuss some of the promising business sectors in Indonesia, whose shares you can buy to make a profit.
1. Hotels and Tourism
The exotic scenery of several islands in Indonesia and the beauty of various cultures has hypnotized millions of visitors and adventurers from around the world every year.
Therefore, many international standard hotels are trying to find a place in Indonesia for the procurement of hotels and the tourism industry, especially in big cities such as Jakarta, Bandung, Denpasar, Semarang, Medan, Balikapapan, Makassar, Surabaya and others.
Due to the large number of foreign tourists coming to Indonesia via Jakarta, Bali and Batam Riau, these three provinces are prime targets for the hotel and tourism industry.
However, during the COVID-19 pandemic and this new normal, the hotel and tourism business sector is very impactful and suffers losses. Even so, now this industry is starting to grow and revive. Especially since the PPKM level was lowered in several regions in Indonesia.
2. Trade and Retail Sector
Indonesia is a country listed in the country market for the retail and trade sector along with China, the United Arab Emirates, India, Kazakhstan, Turkey and Malaysia.
To develop this sector, the government has also focused on infrastructure to bridge between an area and islands in Indonesia so that commodities can be distributed more easily and effectively. With this in mind, increasing the desire of investors in the retail and trade sector in Indonesia
3. Online Sales
The next growing trend for foreign investment in Indonesia is the online selling business or E-commerce. The main reason is that Indonesia is a country with a dense population, and the majority of the population has access to the internet. This allows companies, traders and retailers to reach their personal target market.
4. Infrastructure and Construction
Indonesia’s ambition to attract and invite foreign investors has made this country committed to improving infrastructure for easier access and distribution of commodities and services to all sections in all provinces in Indonesia.
This is a great opportunity for foreign investors to take part in the development. What is currently running are seaports, airports, toll roads, electricity, and transportation which are at the top of the list.
5. Factory and Agriculture
The government opened the door for labor intensive companies, especially in the manufacturing industry to do business in Indonesia. This provides opportunities for local workers which will directly benefit local communities. Several labor companies in Indonesia, such as garments, equipment, assembly, and so on.
In addition, agriculture is also one of the business fields in Indonesia that will never run out, taking into account that Indonesia does have a culture as an agricultural country due to its fertile soil and favorable climate.
How to Get Profits from Stock Investment
When viewed from the method, there are at least two advantages that can be obtained by shareholders or investors when owning shares. These benefits can be obtained through:
1. Dividends
Dividend is the company’s policy to share their company’s profits with their shareholders. This profit sharing itself is given if it has received approval from the shareholders at the General Meeting of Shareholders (GMS)
In order to enjoy the distribution of dividends, at least the shareholders must have held the relevant company’s shares for quite a long time. This time is uncertain, because what is really needed is that you are recognized as a shareholder who is entitled to receive the company’s dividends.
If viewed based on dividends distributed to shareholders, dividends can be classified into two types, namely cash dividends and stock dividends.
Cash dividends: As the name suggests, cash dividends are dividends in the form of cash with a certain nominal value which are distributed to the recipients of the shares.
Stock dividends: Instead of giving cash, stock dividends are distributions of dividends in the form of a number of shares owned by the company. If this stock dividend is distributed, then the shares owned by investors will increase when the stock dividend distribution is carried out.
2. Capital Gains
In simple terms, capital gain is the profit you get from the difference between the purchase price and the selling price when you make a stock transaction. Capital gain itself usually occurs when there is stock trading activity in the secondary market.
For example, suppose you buy XYZ shares at a share price of IDR 5,000 per share. Then, after a few days, you sell the XYZ shares for IDR 6,000 per share. From this example, it means that you get a capital gain of IDR 1,000 for every share you sell.
Capital Gain is the difference between the purchase price and the selling price. Capital gain is formed by the stock trading activity in the secondary market. For example, an investor buys ABC shares at a price of IDR 3,000 per share and then sells them at IDR 3,500 per share, which means that the investor gets a capital gain of IDR 500 for each share he sells.
Thus the discussion regarding the business sector of companies listed on the IDX. Have you planned to diversify your investment in several business sectors?
So, for those of you who want to buy shares in several business sectors listed on the IDX, make sure to check these shares first. You can check economic and stock growth through the Magic application.
In the Magic application, you can do stock analysis more easily. Here, you can check technical stock analysis and check the company’s financial statements. So that later you can choose stocks more precisely according to the analysis you are doing.
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