The report titled “Indonesia Financial Brokerage Market Outlook to 2023– By Equity and Debt Investments Traded Value, Revenue, and Frequency of Transactions and By Local and Global Brokerage Firms” provides comprehensive information on the Indonesian Financial Brokerage market overview and genesis, Indonesia Financial Brokerage market segmentation by type of investment category on the basis of revenue contribution, traded value, and frequency of transactions (equity and debt) and its subtypes and by type of brokerage firms on the basis of revenue contribution (local firms and global firms). The report also covers the market ecosystem, economic analysis of Indonesia and comparison with other Emerging economies of South-Asia, competitive landscape including company profiles and cross-comparison among market players on key operational, profitability, customer base and financial parameters, growth drivers, recent developments, issues and challenges, decision-making criteria for customers while choosing a brokerage firm and snapshots on Investor profile in Indonesia and Sharia Capital Market Trading. The report concludes with the future outlook of the financial brokerage industry in Indonesia and certain recommendations including a success case study of Zerodha India Financial Brokerage Market highlighting the key strategies for entering and remaining profitable in the highly fragmented market.
Indonesia Financial Brokerage Market Overview and Size
Indonesia Financial Brokerage market was observed in a growing stage wherein the market experienced slow growth during the review period 2013-2018. During 2013-2015, a decline in growth rate was observed in Indonesia Financial Brokerage market due to the external factors of a slowdown in the Chinese economy, placing of restrictions on funds borrowing by the Federal Reserve and capital flight from Indonesia’s economy which led to increasing interest rates by the Bank of Indonesia. The phase also experienced presidential and parliamentary elections and continued low awareness among the investors regarding the financial markets. Despite the decline, the financial brokerage industry started recovering in 2016 and has been experiencing a positive CAGR growth to date. Major growth drivers include a stable positive economic outlook of Indonesia, the inflow of foreign investment, a rising number of global strategic partnerships by the brokerage firms, low market capitalization, and others.
Indonesia Financial Brokerage Market Segmentation
By Type of Investment Category (Equity and Debt): Equity Investment Category captured the majority of the market share in terms of revenue contribution and frequency of transactions in Indonesia during 2018 owing to the high liquidity level, increased investment by asset managers of Mutual Funds and rising number of IPOs in the country. In the equity investment category, stocks were the dominant category followed by Rights, Warrants, ETFs and REITs in terms of the revenue contribution to the industry. The remaining market share was captured by the debt investment category including government and corporate bonds during 2018.
By Type of Brokerage Firms (Local Firms and Global Firms)
During the year 2018, the industry revenue was dominated by the local brokerage firms owing to the established branch network, company’s reputation among domestic investors, competitive pricing for online trading and quality of services offered by the firms. However, the entry of global brokerage firms and the increasing level of foreign portfolio investors have been posing a challenge to the dominance of local brokerage firms.
Comparative Landscape in the Indonesia Financial Brokerage Market
The competitive landscape of the industry is characterized by a highly fragmented market structure with 104 brokerage firms competing majorly on the basis of transaction charges, service portfolio, and quality of services, firm’s reputation and online trading facilities for retail clients. Among the local brokerage firms, the leading player in the market is Mandiri Sekuritas in terms of revenue contribution to the industry whereas CGS-CIMB has the highest revenue market share among the global firms.
Indonesia Financial Brokerage Market Future Outlook and Projections
Over the forecast period 2018-2023, the Indonesia Financial Brokerage market is predicted to grow in terms of revenue because of the stable positive economic outlook of the country, improve in the country’s rating, the anticipated increase in the foreign portfolio investments, increasing penetration rate among the domestic investors, rising number of IPOs, capital requirements of the government for infrastructure building and the boom in the mutual fund’s segment of the capital market.
Key Segments Covered:-
By Type of Investment Category:
Debt Investment Category
By Type of Brokerage Firms:
Time Period Captured in the Report:-
Historical Period – 2013-2018
Forecast Period – 2018-2023
CGS-CIMB Sekuritas Indonesia
UBS Sekuritas Indonesia
Mirae Asset Sekuritas Indonesia
Indo Premier Sekuritas
Yuanta Sekuritas Indonesia
Macquarie Sekuritas Indonesia
Valbury Sekuritas Indonesia
Trimegah Sekuritas Indonesia Tbk
Key Topics Covered in the Report:-
Economic Analysis of Indonesia
Cross Comparison of Indonesia with other South Asian Emerging Economies
Indonesia Financial Brokerage Market Ecosystem
Indonesia Financial Brokerage Market Overview and Genesis
Business Models in the Indonesia Financial Brokerage Market
Snapshot on Investor Profile in Indonesia Financial Brokerage Market
Indonesia Financial Brokerage Market Size, 2013-2018
Snapshot on Sharia capital market Trading
Growth Drivers in the Indonesia Financial Brokerage Market
Recent Developments in the Indonesia Financial Brokerage Market
Issues and Challenges in the Indonesia Financial Brokerage Market
Customer decision making criteria in the Indonesia Financial Brokerage Market
Competitive Landscape in the Indonesia Financial Brokerage Market
Indonesia Financial Brokerage Market Future Outlook and Projections, 2019-2023
Analyst Recommendations in the Indonesia Financial Brokerage Market
Case Study of Zerodha’s success in Indian Financial Brokerage Market
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Ankur Gupta, Head Marketing & Communications