Broadening the Literacy of College Students on Capital Market,

Would Galeri Investasi be Able to do the Task?

Retno Mustika Dewi and Dhiah Fitrayati

Faculty of Economic Universitas Negeri Surabaya, Indonesia

Keywords: Indonesia Stock exchange, Galeri Investasi.

Abstract: Indonesian Stock Exchange (IDX) is an affiliated company of Jakarta stock exchange and Surabaya stock

exchange. In order to advance Indonesian public’s knowledge on capital market, IDX have made cooperation

with universities to construct a learning space called Galeri Investasi. The presence of Investasi is expected

to be a means of learning space for academics to apply their knowledge which they obtained from attending

classes and to support research activities conducted by academics. The Galeri Investasi program, includes

seminar and workshop as its activities, is intended for education & socialization of capital market. Moreover,

the presence of Galeri Investasi is significantly meaningful for students since they can learn any kinds of

products traded on capital market such as share and mutual funds and apply how to make a transaction in

capital market. The purpose of this study are to describe (1) Efforts of Indonesia Stock Exchange and OJK in

increasing capital market literacy, (2) Investment Gallery benefits in increasing student capital market

literacy, and (3) Impact of Investment Gallery at University. Furthermore, this article will discuss the merits

and impacts of Galeri Investasi IDX placed on universities.

1 INTRODUCTION

Kemu (2016) stated that OJK as one of the Trisula

units of the financial sector together with the Ministry

of Finance and Bank Indonesia plays an important

role in developing the financial sector. Particularly in

terms of carrying out the OJK policy instruments

trilogy are financial inclusion, financial literacy

(including capital markets) and consumer protection.

The OJK policy trilogy is conducted in order for the

financial sector to grow sustainably and consumer

empowerment occurs. If both matters are well

executed, then the ultimate target of the OJK policy

trilogy is (i) economic growth, (ii) poverty alleviation

and (iii) equal distribution of income can be achieved.

Capital markets that are part of the financial sector,

have great potential to contribute in the achievement

of these targets because of its enormous potential but

not yet developed optimally. Based on best practice

in various countries, capital market is the second

largest source of funding after banking. Therefore, the

government should be more focused and seriously to

raise Indonesia's capital market which is currently its

role as a source of financing only reaches 47% of

GDP.

In this regard, the Financial Literacy Survey

conducted by the Financial Services Authority (OJK)

in 2014 reveals the Indonesian public's literacy

towards the capital market is still sad. Director of

Capital Market Regulation of OJK said that the

survey mentioned only 4% of the total population of

Indonesia who know about the capital market, from

4%, only 0.01% utilizing the capital market to invest

and no more than 600 thousand who have securities

account. To encourage the growth of these figures,

OJK will fix and facilitate the opening of securities

accounts.

Channels connecting capital markets and

customers are also important for people to more

easily buy the existing investment instruments in the

capital market. Meanwhile, in order to support OJK

mission in increasing the financial literacy of society,

East spring again held East spring Tour de Campus

2016 by cooperating with Faculty of Economics and

Business Universitas Udayana, Bali. East spring Tour

de Campus is an investment education program in the

form of seminars at selected universities. Previously

East spring Tour de Campus was held at Andalas

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Dewi, R. and Fitrayati, D.

Broadening the Literacy of College Students on Capital Market, Would Galeri Investasi be Able to do the Task?.

In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship (ICEEE 2017), pages 582-586

ISBN: 978-989-758-308-7

University Padang, Padjajaran University Bandung,

Gadjah Mada University Yogyakarta, Lampung

University and Bina Nusantara University. The event

aims to introduce investment, capital market industry

and exposure to career opportunities in the capital

market to students by bringing in capital market

practitioners from East spring. Chief Marketing

Officer of East spring said the interest of Indonesian

people, including young people such as students in

investing in the capital market is still very small.

"OJK mentions that 600 thousand of these securities

accounts are only 300-400 thousand who invest in

mutual funds. This figure when compared with

Thailand which has reached 25 million accounts, is

still very small.

In line with the previous statement, the Financial

Services Authority (OJK) stated that the capital

market literacy rate in Yogyakarta is still very low or

only 0.11%. This figure is the lowest among other

financial products. Based on that consideration, OJK

Yogyakarta continues to socialize and educate to

improve knowledge about capital market. The low

public literacy on the capital market is in contrast to

the potential in the capital market. Because the

transactions and profits can be very large. Mentioned,

one of the efforts to carry out socialization and

education about the capital market, the OJK doing

stock lab game competition. Stock lab is a card game

like a monopoly card that contains the terms of the

capital market. Stock lab is a means of socializing and

educating the stock market for the layman. This card

is packaged as simple as possible, so it's easy to

understand. Competition Stock Lab is able to attract

students, at least there are 167 people who come from

students and students participate in this competition.

Head of Capital Market Division of OJK DIY Farhan

Nugroho added, stock lab card is a means of

education for capital market literacy. Stock lab game

has been introduced since 2016. In the early stages,

this card has been widely played in 40 campuses

throughout Indonesia. Although there is no exact

figure, the learning model through the stock lab card

can increase the literacy rate. What happened to DIY

did not rule out also happened to other regions in

Indonesia. Stock lab is a card game that is packaged

as simple as possible with various terms in the capital

market. In addition to learning the term, through this

card later the public can directly conduct transactions.

Because, they know when to buy stocks and sell

shares. Because in stock lab card game there is also

learning how and when to transact. Head of Indonesia

Stock Exchange (BEI) Yogyakarta, acknowledge if

some terms of the capital market is feels foreign and

difficult to understand by ordinary people. Through

this game is expected to increase understanding of the

public related to the capital market. The goals of the

game are high school students and also students.

Socialization through this stock lab card has been

done through 29 investment galleries at the

University.

In 2016 the Financial Services Authority (OJK)

released a national survey on Literacy and Inclusion

of Indonesian Finance. Based on survey results, it is

stated that Indonesia's financial literacy and inclusion

increased at 67.82 percent in 2016 from 59.74 percent

in 2013. This indicates that the capital market has

become known by the public. Efforts made by

Indonesia Stock Exchange (IDX) in order to increase

the literacy of public financial inclusion is to organize

programs such as Yuk Saving Stocks, with only Rp

100.000 and established some investment gallery

spread over the Universities in Indonesia. The

program is expected to achieve Indonesia's financial

inclusion literacy target of 75 percent by 2019.

Currently in Indonesia there are 258 investment

galleries and by 2017 will grow to 300 investment

galleries. Head of Representative Office (KP)

Indonesia Stock Exchange (BEI) DIY stated that with

the segmentation of young people through the product

Yuk Nabung Shares is expected from a young age

already familiar with stock products so that no longer

stuck with the investment is not clear. The existence

of investment gallery in a number of college

campuses of Higher Education adds opportunities for

students to practice in the investment world.

Investment Gallery Indonesia Stock Exchange

(IDX) is a means to introduce the Capital Market

from an early age to the world of academics.

Investment Gallery BEI concept 3 in 1 which is a

collaboration between BEI, Higher Education and

Securities Company is expected not only to introduce

Capital Market from the theory side but also practice.

Going through IDX Investment Gallery which

provides real time information to learn to analyze

stock trading activity, is expected to be a bridge to the

mastery of science and its practice in capital market.

Investment Gallery BEI provides all publications and

printed materials regarding capital markets issued by

the Indonesia Stock Exchange including Capital

Market regulations and Laws. The information and

data in IDX Investment Gallery may be used by the

academic community for academic purposes, not for

commercial purposes in the case of sale and purchase

transactions.

With the Investment Gallery BEI expected to be

mutually beneficial for all parties so that the

dissemination of capital market information on target

and can provide optimal benefits for students,

Broadening the Literacy of College Students on Capital Market, Would Galeri Investasi be Able to do the Task?

583

economic practitioners, investors, observers of

capital markets and the general public in the region

and surrounding both for the benefit of socialization

and education / Capital market education or for the

benefit of economic or alternative investment

(http://www.idx.co.id/id-

id/beranda/tentangbei/programbei/galeriinvestasibei.

aspx)

Lusardi and Mitchell (2007) stated that financial

literacy is a financial knowledge with the aim of

achieving prosperity. Lawrence et al (2006) also

states a similar thing that it takes knowledge of how

to manage finances and how to invest in techniques

that cannot be ignored, like previous times.

Furthermore Cude et al stated that the cause of the

development of financial instruments without

accompanied by the desire of people to invest one of

them is the low literacy financial community. Thus

financial literacy plays an important role in increasing

knowledge about capital market.

Based on the above statement, this research will

discuss about (1) Efforts of Indonesia Stock

Exchange and OJK in increasing capital market

literacy, (2) Investment Gallery benefits in increasing

student capital market literacy, and (3) Impact of

Investment Gallery at University.

2 METHODS

This research is descriptive qualitative research type.

A method of examining the status of a group of

people, an object, a set of conditions, a system of

thought or a class of events in the present. The

purpose of this descriptive study is to make the

description, description or painting systematically,

factually, and accurately about the facts and the

nature or relationship between the phenomena being

investigated. The object investigated in this research

is the role of Investment Gallery in increasing capital

market literacy. Furthermore, this research use

triangulation for collecting data there are observation

and documentation.

3 RESULTS AND DISCUSSION

BEI-OJK's efforts in increasing capital market

literacy are (1) held East spring Tour de Campus 2016

by cooperating with Faculty of Faculty` on Higher

Education. This program has been implemented at the

Faculty of Economics and Business Udayana

University, Bali. East spring Tour de Campus is an

investment education program in the form of

seminars at selected universities. Previously East

spring Tour de Campus was held at Andalas

University Padang, Padjajaran University Bandung,

Gadjah Mada University Yogyakarta, Lampung

University and Bina Nusantara University. The event

aims to introduce investment, capital market industry

and exposure to career opportunities in the capital

market to students by bringing in capital market

practitioners from East spring, (2) carrying out a stock

lab game competition program. Stock lab is a card

game like a monopoly card that contains the terms of

the capital market. Stock lab is a means of socializing

and educating the stock market for the layman. This

card is packaged as simple as possible, so it's easy to

understand. The stock lab game training is held to

expand and improve the knowledge and role of

students in the use of financial products and services

in the capital market. Competition Stock Lab is able

to attract students, at least there are 167 people who

come from students and students participate in this

competition in the area of Special Istimewa

Yogyakarta. Through this game is expected to

increase the understanding of the community related

to capital markets, (3) organize programs such as

'Yuk Saving Stocks', with only Rp 100,000. The

Indonesia Stock Exchange (IDX) invites all

Indonesians through the 'Yuk Nabung Saham (YNS)'

campaign to start investing in the capital market. By

providing knowledge to the public about the ins and

outs of capital market investments, BEI wants to raise

awareness of the importance of investing in stocks,

increasing the number of local investors also

improving the economy of Indonesian society, (4)

establishing several investment galleries scattered

across the universities in Indonesia. Investment

Gallery BEI concept 3 in 1 which is a collaboration

between BEI, Higher Education and Securities

Company is expected not only to introduce Capital

Market from the theory side but also practice. In the

future through BEI Investment Gallery which

provides real time information to learn to analyze

stock trading activities, it is expected to be a bridge to

the mastery of science and its practice in the capital

market, and (5) organize the Capital Market School

(SPM) and Sharia Capital Market School (SPMS).

This capital market education and socialization

program is held regularly by the Indonesia Stock

Exchange (IDX). All the general public can become

SPM and SPMS participants as long as they have

registered in accordance with applicable terms and

conditions.

The purpose of this program is to provide a true

education about investment, to educate about stock

investments, to provide information on mechanisms

ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship

584

to become a stock investor, to educate the theory of

stock selection to be invested, and to provide

information about institutions in capital markets that

provide facilities and Protection to investors, and (6)

organizing capital market seminars and workshops,

the purpose of this program is to enable students and

communities to interact directly with capital market

practitioners.

Furthermore, the benefits of investment gallery

establishment in universities are (1) For Indonesia

Stock Exchange as a means of socialization &

education in academic circles so that it can be done

well, so that academic community is expected not

only to know Capital Market from theory side but can

directly do (2) For universities, there are strategic

alliances with capital market actors (BEI, AB, Vendor

Data) and Improving Brand Name and Sales Value of

Higher Education, (3) For Securities Exchange

Member Company, as a media promotion step among

students / Academician and as media recruitment of

reliable Capital Market Human Resources, (4) For

Data Vendor, as a media step of promotion of data

product among academicians, do not issue hardware

investment for corner of Indonesia Stock Exchange &

Capital Market Lab and as media recruitment Human

Capital HRM .

Next, the impact of investment gallery

establishment on Higher Education are (1) the

education or socialization of capital market through

Investment Gallery in the form of capital market

training with themes such as introduction of capital

market products, transaction mechanism,

fundamental analysis and technical analysis. In

addition to the training there are also stocks

simulation activities, capital market schools and some

other activities related to the capital market, (2)

students can use the available computer facilities in

the Investment Gallery room to learn about capital

market products, study Danareksa's research on

economics , Stocks and bonds, and see information

on stock price movements and news that are the

concern of investors in the stock market, (3) Increase

the knowledge of students in terms of investment,

especially stock investment, students can directly

participate to feel investing with stock instruments,

(4) keep up with the economic, business, security,

social trends that affect the dynamics of stock

movement, (5) to grow the soul and investment

climate and to minimize the "literacy" of investment

among students or the generation Young in general,

and (6) attract students And the young to become

investors in the capital market.

4 CONCLUSIONS

Based on the results of discussion in this article is

expected to encourage and motivate students to invest

and take part in the stock exchange so as to create

young investors. Furthermore, the conclusion of this

article as below.

Efforts made by BEI OJK in increasing capital

market literacy include East spring Tour de Campus,

stock lab game competition program, such as 'Yuk

Saving Stocks', establishing several investment

galleries scattered in universities in Indonesia,

conducting Market Schools Capital (SPM) and

Syariah Capital Markets School (SPMS), organize

seminars and capital market workshops. The role of

Investment Gallery is a means of socialization &

education in academic circles, strategic alliances with

capital market actors (BEI, AB, Data Vendor) and

Improve Brand Name and Sales Value of Higher

Education, media promotion step among students /

academics and as media recruitment Capital Market

HR is reliable, and as a media step promotional

product data among academics. The impact of

investment gallery establishment in Higher Education

is the education or socialization of capital market

through Investment Gallery, students can use

computer facilities available in Investment Gallery

room, Increase student knowledge in investment,

keep up with economic, business, security, Social,

growing soul and investment climate as well as

minimal "literacy" of investment among students,

attract students and young people to become investors

in the capital market.

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