REPUBLIKA.CO.ID, JAKARTA -- The inclusion of banking supervision to the Financial Services Authority (OJK) could increase distribution network for potential investors who want to open a securities account.

IT Director Adikin Basirun of OJK revealed, the effort is expected could increase the number of new local investors.

"[Our] investement penetration is still lagged behind. This reality should be seen as an opportunity," said Adikin in Jakarta, Wednesday (23/10).

The total number of investors in Indonesia is only 1.1 to 1.2 million. The amount has not reached even one percent of the total population of Indonesia. By utilizing the existing banking network throughout Indonesia, it could multiply the number of people who want to become new investors in their own country.

The same system applied in Korea, he said. Common people could open securities account just by visiting a bank. The big obstacle for us currently is the regulation.

According to regulations, he added, banking and capital market institutions should be separated. Therefore regulators should conduct in-depth studies to multiply additional doors for investors.

Adikin did not say his institution is able to solve the problem. But in case it could be solved, the number of new retail investors, especially in Indonesia, will increase.

On the other side, the number of direct equity investor in Indonesia is only 400 thousand. The rest are indirect investors, who invest into stock market through insurance instruments and mutual funds.

To solve the problem, stock exchange authority continues to increase education and outreach to increase the number, especially the number retail investors.

Indonesia's stock exchange also trying to extent its range so the investors, not only come from Java but from all over the archipelago. "About 90 percent of investors come from the island of Java. And 80 percent of investors in Java come from Jakarta," he said.

Increasing number of investors in Indonesia expected could reduce foreign domination. Currently foreign investors in Indonesia's stock market reached 51 percent. This number has decreased compared to 67 percent in 2009.

He hopes, through various regulations and socialization, the number of investors could be increased. "So Indonesia's investor will able to be a host their own home," he said.

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