Design Thinking for Indonesia Stock Exchange

Finance

Indonesia Stock Exchange (IDX) has a long history which traced back to its establishment in the market since 1912 under the authority of The Dutch colonization government in The Dutch Indies (Hindia Belanda or Indonesia). Along the way, the development and growth of the capital market was not as much as expected. Many factors had impacted its journey: World War I and II, transfer of governmental authority from The Netherlands to Republic of Indonesia and several conditions that limited its development. Until then the government of Indonesia reactivated the capital market in 1977. Through the time, Indonesia Capital Market has achieved key milestones from the first stock issue – PT Semen Cibinong in 1977, government initiative regulation to foster capital market and banking sector in 1988.

In the past 5 years, IDX has been growing rapidly and becoming one of the fastest growth of Stock Exchange or Capital Market in Asia. Recently IDX achieved the recognition as the biggest emerging market capitalization in South East Asia, with more than USD 430 billion. Its Joint Composite Index / Index Harga Saham Gabungan (IHSG) has also reached new record at IDR 5,500 per March 2017. These achievements create a whole world of opportunities for Indonesian and Foreigners investors to choose stock market in IDX for investment.

However, there are still a lot rooms for improvements and innovations. The Leadership team of IDX has devised the strategies to achieve its vision to be the biggest capital market in ASEAN by 2020. IDX’s journey to fulfill their dreams are facing 4 big challenges:

  1. The number of active investors. Indonesia with total population of 250 million people is still low in terms of individual investors in stock market, recorded only at below 5% active investors.
  2. Stock brokers still to be improved. Stock brokers are front liners of IDX and they are certified and trained to help the customers in managing their stock portfolio. However, there is a concern of leveraging their skills to be more customer-oriented.
  3. The number of listed companies. Comparing to other stock market in ASEAN, IDX has lower number of listed companies. Regulation and also market & economic condition, plus internal management of corporate finance, play important factors to enable companies to go public and listing their entity in the stock market.
  4. The resilience is to be improved. Even though the growth is still high, but it’s still fragile to any excess and fraud, plus the market stability needs to be guarded by a strong but customer-oriented compliance and regulations.

The IDX’s Board of Directors believe that to anticipate these challenges, they have to have a solid human capital and fit corporate culture to incorporate the innovative thinking. IDX invited Innovesia to conduct a Design Thinking workshop for IDX employees from various functions and background, in order to shape and change their mindset to be able to overcome the challenges and create opportunities in achieving their Vision and Mission.

The Design Thinking workshop in IDX was participated by 25 IDX’s employees from various level and functions. They were enthusiastically following the workshop’s sessions. Participants were grouped into 4 groups, one challenge per group, and each group was accompanied and guided by Innovesia’s Facilitator to gain deeper understanding of methods and concepts into real practice.

They benefited the workshop with a clear guidance on how to get the right mindset to innovate or create disruptive innovation positively. We took the participants into field immersion in IDX building and surrounding to get the first hand interview and observation with their customers or potential customers. After the field immersion, the participants gathered in the workshop room to share and download their findings and insights from customers.

Then the participants were encouraged to create disruptive ideas and solutions which is in line with the challenge each group was assigned to. As the result there were many wild and crazy ideas being demonstrated by the participants in each group. Before the workshop ended, each group built a prototype based on selected idea. Prototype is basically the visualization of their idea and solution to be able to create conversation and gain feedback from the target customers. We also infused the mindset of prototyping, “Fail often, to success sooner”.

The ideas created by 4 groups were amazing and creative:

  1. A movie based on a true story of a successful value investor, to create awareness for laymen and attracting them to become a stock investor
  2. Building an interactive digital lounge for attracted investor and to share knowledge about investing in stock or capital market.
  3. Shaping IDX academy for the benefit of brokers, and also to enhance their skills and capability to become customer-oriented person
  4. The communication portal for compliance and regulation, in order to get the right compliance and build the capital market’s resilience.

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