ANALYZING CONSUMER BEHAVIOR SHIFTS IN INVESTMENT
DECISIONS DURING THE COVID-19 PANDEMIC
Introduction:
Consumer purchasing behavior in making decisions is influenced by cultural
factors, social factors, personal factors, and psychological factors (Kotler, 2005). This
decision to choose is not always easy, especially because we have limitations. If With these
limitations, we are forced to get something very ideal, so it is not uncommon for the
decision to be wrong. As a result, it must bear the risk of choosing the wrong choice so that
it can be detrimental. In making this decision, accuracy is also needed, including in
choosing the investment instrument that will be taken by someone, because in essence
investment is the placement of a number of funds at this time with the hope of obtaining
future profits. In investing, of course, it is based on consumer behavior which is strongly
influenced by the circumstances and situation of the layer of society in which he was born
and developed. This means that consumers from different layers of society or environment
will have different assessments, needs, opinions, attitudes, and tastes, so that decision
making in the purchasing stage will be influenced by several factors (Kholishudin, 2020).
Before the Coronavirus Disease 2019 (Covid-19) pandemic, global economic
conditions still showed positive growth. Although before Covid-19, the global economy
was enveloped by several threats, namely geopolitical tensions between the United States
and Iran, the trade war between the United States and the European Union triggered by the
EU green deal, the trade war between the United States and China and the unfinished
Brexit issue. However, overall the global economic conditions before the Covid-19
pandemic were still good and prospective for investment. Not only the global economy is
still positive, even before the pandemic, the national economy was still quite good as seen
from the JCI in early January which had touched 6300, this is one of the good and
interesting achievements for Indonesia. Not only that, the national economic outlook is
also still stable, economic growth is at a level of five to five and a half percent. Then the
regulations made by the government, the condition of the rupiah which tends to be more
stable and our good foreign exchange reserves are an attraction for investors to invest in
Indonesia. Covid-19 has social, cultural and economic impacts. One of the economic
impacts in the midst of the Covid-19 pandemic has an impact on changes in behavior in
making decisions in investing.
Covid-19 has become a terrible pandemic. This global coronavirus outbreak in a
short time (within months) has spread to hundreds of countries across continents. At the
end of April 2020, at least 3.5 million people from 210 countries were hospitalized or self-
quarantined. This outbreak has also caused more than 250 thousand people to die in
hospitals in Asia, America, Europe, Australia, Africa and Antarctica. Physically and
psychologically, the Covid-19 pandemic has disturbed more than 8.9 billion people in Asia,
America, Europe, Australia, Africa and Antarctica worried. Some of them are forced to
undergo a social distancing phase (keeping a safe distance, staying at home, working at
home, even worshiping at home) for months. The pandemic has also had a tremendous
impact on the world economy and affected countries. The threat of recession and even
depression is in sight. In two consecutive quarters, national economic growth contracted by
- 5.32% (Junaedi & Salistia, 2020). To prevent, or at least suppress, the rate of
transmission, a number of major affected countries have carried out lockdowns, regional
quarantines, and Large-Scale Social Restrictions (PSBB). Flights have been suspended in
many countries. Land and sea transportation is also limited. A number of industries
stopped producing. Human movement is also prevented between countries, between
provinces, between affected districts and cities. This condition makes economic activity
also affected (Junaedi & Salistia, 2020). When PSBB occurs, many companies collapse.
Companies listed on the capital market, which play a role in the tourism sector, are all
negative. So if we look at it, it is not only the financial aspects of the company that have
been hit because of the Covid-19 pandemic, but also the real and fundamental aspects has
also been affected. So it is only natural that stock prices have fallen or even now the stock
price performance is not as good as before the pandemic. Fluctuations in the capital market
affect investor behavior in investing because we analyze the capital market not only by
looking at numbers, but we also look at the financial aspects of the behavior or economic
behavior of an investor (Fakhrunnas, 2020). From the previous explanation, it is necessary
to further study the impact of the Covid-19 pandemic on consumer behavior in Indonesia.
Methods
This research uses a qualitative method with a literature study. While the approach
applied uses descriptive analysis with data related to the problem in the study. The author
uses reading sources such as journals, articles, news, and others as material for writing.
Then after collecting data from various sources that have been mentioned, conclusions can
be drawn and the study is developed in this study. Data analysis is carried out using
systematic literature review techniques by interpreting studies related to consumer
behavior.
Results and Discussion
Consumer behavior is the behavior shown by consumers in searching for, buying,
using evaluating, and stopping consumption of products, services, and ideas (Tjiptono,
2007). Consumer purchasing behavior is influenced by cultural factors, social factors,
personal factors, and psychological factors (Kotler, 2005). However, if it is related to the
world of investment specifically regarding the capital market, this opinion still raises
questions, whether the four factors really have an effect and which factor is the most
dominant in influencing investors' decisions to transact (Novrianda et al., 2020). The
factors that influence consumer decisions are: cultural factors, social factors, personal
factors and psychological factors.
Covid-19 has been wreaking havoc in the world since it was discovered in Wuhan
China in late 2019. Not only does it affect human health and way of life but also the
economy and stock market. A stock market crash is inevitable due to COVID-19. Many
businesses closed/bankrupted, unemployment soared, poverty increased, and fear struck
many investors so many investors sold their shares causing stock prices to plummet across
the board.
Before the Covid-19 pandemic, global economic conditions still showed positive
growth. Although before Covid-19, the global economy was enveloped by several threats,
namely geopolitical tensions between the United States and Iran, the trade war between the
United States and the European Union triggered by the EU green deal, the trade war
between the United States and China and the unfinished Brexit issue. However, overall the
global economic conditions before the Covid-19 pandemic were still good and prospective
for investment. Not only the global economy is still positive, even before the pandemic, the
national economy was still quite good as seen from the JCI in early January which had
touched 6300, this is one of the good and interesting achievements for Indonesia. Not only
that, the national economic outlook is also still stable, economic growth is at a level of five
to five and a half percent. Then the regulations made by the government, the condition of
the rupiah which tends to be more stable and our good foreign exchange reserves are an
attraction for investors to invest in Indonesia (Fakhrunnas, 2020).
The covid-19 virus in Indonesia was first discovered around early or mid-March.
After the virus was discovered, the JCI trend declined. Because at that time it appeared
Covid-19 issues are starting to spread from Wuhan to Japan, Korea and Singapore which is
the closest country to Indonesia. So this decline caused our JCI to decline to below the
4000 level. This decline is of course also inseparable from the sentiment of investors who
saw that the Indonesian government at that time was not serious in dealing with Covid-19
so that when the health crisis occurred and these sentiments existed, making investors
prefer to withdraw their funds from the capital market so that it certainly made stock prices
decline. The movement of the capital market if this is an investment will be greatly
influenced by the company. When PSBB occurred, many companies collapsed. If we look
at today, the companies listed in the capital market, which play a role in the tourism sector,
are all negative. So if we look at it, it is not only the financial aspect of the company that
has been hit by the covid-19 pandemic, but also the real and fundamental aspects have also
been affected. So it is only natural that stock prices have fallen or even now stock prices
are not performing as well as before the pandemic (Fakhrunnas, 2020).
Fluctuations in the capital market affect investor behavior in investing because we
analyze the capital market not only by looking at numbers, but we also look at the
behavioral finance or behavioral economics aspects of an investor. If the investor tends to
be a risk-averse or even moderate investor, then perhaps the investor will choose to
withdraw his funds from the capital market and then invest his funds in the Patricia,
Cisneros scheme or investment instruments that are save haven or investments that have a
low level of risk, for example gold. If the investor is a risk taker, maybe he will continue to
maintain his investment (Fakhrunnas, 2020).
From the results of research (Ningsih, 2021) analyzing the behavior of FAC
investors registered at the Sharia Investment Gallery (GIS) of the Indonesia Stock
Exchange (BEI) of the State Islamic Institute (IAIN) Bengkulu who invested in the capital
market during the Covid-19 pandemic in making investment decisions based on price
factors, psychological factors, and investor personal factors. For the price factor, the
behavior of FAC investors registered in the GIS BEI IAIN Bengkulu in making trades is
locked in on prices, both past prices and current prices. Price is a consideration for
investors in selling or buying even though information about price is not relevant in
decision making. For psychological factors, it was found that FAC investors registered in
the GIS BEI IAIN Bengkulu have social behavior of interaction with other investors,
because most investors are influenced by information from other investors or other parties.
Theory reveals that psychological factors affect the financial behavior of investors. One of
the psychological factors is social interaction. Social interaction can influence investors'
decisions in making transactions.
From Fadly's presentation, (2021) public statistical data issued by PT Kustodian
Sentral Efek Indonesia (KSEI) in January 2021 shows a significant increase in the number
of capital market investors. Data at the end of 2018 to the end of 2019 shows an increase in
the number of investors from 1,619,372 to 2,484,354. This increase of 53.41% is still lower
than the data from the end of 2019 to 2020. By the end of 2020, the number of investors
had reached 3,880,753 despite the ongoing pandemic. This indicates that business in the
capital market is more people's choice than the real business which is in a slump during
this pandemic due to Large-Scale Social Restrictions (PSBB). The decline of JCI from the
6300 area to the 3900 area within three months shows that the pandemic is indeed very
severe. Meanwhile, on March 31, 2020 the signing of Government Regulation Number 21
of 2020, which regulates PSBB as a response to covid-19, was just done. Investor response
in this condition is quite diverse from several forums or social media. There are pros and
cons who argue that JCI will still go down, there are also those who argue that JCI will still
go down will rebound among investors. Despite the high increase in the number of
investors, the number of transaction volumes in 2019 is still more than in 2020. In 2019,
the transaction volume was 36,534,971,048, while in 2020 it was 27,495,947,445. This
reflects that most investor behavior tends to wait and see, waiting for the right time to
make transactions.
Market conditions have high volatility when viewed from transactions per day or
per week in the second to third quarter of 2020. Investors who are commonly called
"traders" take advantage of this condition by making fast transactions of course
accompanied by high risk. March was the month with the highest volatility in 2020 with
the highest index area of 5,700 and the lowest area of 3,900. In addition, in the fourth
quarter, October to be precise, began to show a rebound so that the JCI could return to the
6,000 area. In general, from March to December 2020 the JCI began to show price stability
despite a decline in September. The Government's strategy in imposing the PSBB was
appropriate although a little late seeing from the JCI increase graph starting from April
2020. An increase in the number of investors, especially retail investors, can have a
positive impact on the capital market world. Hopefully in the following years, transactions
in the capital market can be healthier with more retail investors. For this reason, retail
investors also need to pay attention to the reasons for making transactions, not just buying
and selling but digging deeper information about the issuer through fundamental and
technical information. In addition, investors must also be mentally prepared for conditions
like this pandemic. A good emotional state is needed to deal with situations with negative
trends like today, and also during positive trends. Make sure to use "cold" money in
making stock transactions, i.e. money that is not a daily dependency. During this pandemic,
there are still investors who consider stocks to be the same as gambling and make extreme
decisions to sell their homes or seek loans in order to make transactions in the stock
market. Keep your sanity when trading in the capital market (Fadly, 2021).
Conclusions and Suggestions
From the previous explanation, it can be concluded that consumer behavior in
making decisions in investing during the Covid-19 pandemic is determined by several
factors, among others: price, psychology and personal factors of investors. Investment
decision making to buy shares on the grounds that there is the right opportunity because
stock prices have fallen during the covid-19 pandemic. The reason investors decided to
invest during the covid-19 pandemic is the estimation that by buying shares at a low price
at this time they can sell them when the price rises after the pandemic.
Covid-19 has been wreaking havoc in the world since it was discovered in Wuhan
China in late 2019. Not only does it affect human health and way of life but also the
economy and stock market. A stock market crash is inevitable due to COVID-19. Many
businesses closed/bankrupted, unemployment soared, poverty increased, and fear struck
many investors so many investors sold their shares causing stock prices to plummet across
the board.
Before the Covid-19 pandemic, global economic conditions still showed positive
growth. Although before Covid-19, the global economy was enveloped by several threats,
namely geopolitical tensions between the United States and Iran, the trade war between the
United States and the European Union triggered by the EU green deal, the trade war
between the United States and China and the unfinished Brexit issue. However, overall the
global economic conditions before the Covid-19 pandemic were still good and prospective
for investment. Not only the global economy is still positive, even before the pandemic, the
national economy was still quite good as seen from the JCI in early January which had
touched 6300, this is one of the good and interesting achievements for Indonesia. Not only
that, the national economic outlook is also still stable, economic growth is at a level of five
to five and a half percent. Then the regulations made by the government, the condition of
the rupiah which tends to be more stable and our good foreign exchange reserves are an
attraction for investors to invest in Indonesia (Fakhrunnas, 2020).
The covid-19 virus in Indonesia was first discovered around early or mid-March.
After the virus was discovered, the JCI trend declined. Because at that time it appeared
Covid-19 issues are starting to spread from Wuhan to Japan, Korea and Singapore which is
the closest country to Indonesia. So this decline caused our JCI to decline to below the
4000 level. This decline is of course also inseparable from the sentiment of investors who
saw that the Indonesian government at that time was not serious in dealing with Covid-19
so that when the health crisis occurred and these sentiments existed, making investors
prefer to withdraw their funds from the capital market so that it certainly made stock prices
decline. The movement of the capital market if this is an investment will be greatly
influenced by the company. When PSBB occurred, many companies collapsed. If we look
at today, the companies listed in the capital market, which play a role in the tourism sector,
are all negative. So if we look at it, it is not only the financial aspect of the company that
has been hit by the covid-19 pandemic, but also the real and fundamental aspects have also
been affected. So it is only natural that stock prices have fallen or even now stock prices
are not performing as well as before the pandemic (Fakhrunnas, 2020).
Fluctuations in the capital market affect investor behavior in investing because we
analyze the capital market not only by looking at numbers, but we also look at the
behavioral finance or behavioral economics aspects of an investor. If the investor tends to
be a risk-averse or even moderate investor, then perhaps the investor will choose to
withdraw his funds from the capital market and then invest his funds in the Patricia,
Cisneros scheme or investment instruments that are save haven or investments that have a
low level of risk, for example gold. If the investor is a risk taker, maybe he will continue to
maintain his investment (Fakhrunnas, 2020).
From the results of research (Ningsih, 2021) analyzing the behavior of FAC
investors registered at the Sharia Investment Gallery (GIS) of the Indonesia Stock
Exchange (BEI) of the State Islamic Institute (IAIN) Bengkulu who invested in the capital
market during the Covid-19 pandemic in making investment decisions based on price
factors, psychological factors, and investor personal factors. For the price factor, the
behavior of FAC investors registered in the GIS BEI IAIN Bengkulu in making trades is
locked in on prices, both past prices and current prices. Price is a consideration for
investors in selling or buying even though information about price is not relevant in
decision making. For psychological factors, it was found that FAC investors registered in
the GIS BEI IAIN Bengkulu have social behavior of interaction with other investors,
because most investors are influenced by information from other investors or other parties.
Theory reveals that psychological factors affect the financial behavior of investors. One of
the psychological factors is social interaction. Social interaction can influence investors'
decisions in making transactions.
From Fadly's presentation, (2021) public statistical data issued by PT Kustodian
Sentral Efek Indonesia (KSEI) in January 2021 shows a significant increase in the number
of capital market investors. Data at the end of 2018 to the end of 2019 shows an increase in
the number of investors from 1,619,372 to 2,484,354. This increase of 53.41% is still lower
than the data from the end of 2019 to 2020. By the end of 2020, the number of investors
had reached 3,880,753 despite the ongoing pandemic. This indicates that business in the
capital market is more people's choice than the real business which is in a slump during
this pandemic due to Large-Scale Social Restrictions (PSBB). The decline of JCI from the
6300 area to the 3900 area within three months shows that the pandemic is indeed very
severe. Meanwhile, on March 31, 2020 the signing of Government Regulation Number 21
of 2020, which regulates PSBB as a response to covid-19, was just done. Investor response
in this condition is quite diverse from several forums or social media. There are pros and
cons who argue that JCI will still go down, there are also those who argue that JCI will still
go down will rebound among investors. Despite the high increase in the number of
investors, the number of transaction volumes in 2019 is still more than in 2020. In 2019,
the transaction volume was 36,534,971,048, while in 2020 it was 27,495,947,445. This
reflects that most investor behavior tends to wait and see, waiting for the right time to
make transactions.
Market conditions have high volatility when viewed from transactions per day or
per week in the second to third quarter of 2020. Investors who are commonly called
"traders" take advantage of this condition by making fast transactions of course
accompanied by high risk. March was the month with the highest volatility in 2020 with
the highest index area of 5,700 and the lowest area of 3,900. In addition, in the fourth
quarter, October to be precise, began to show a rebound so that the JCI could return to the
6,000 area. In general, from March to December 2020 the JCI began to show price stability
despite a decline in September. The Government's strategy in imposing the PSBB was
appropriate although a little late seeing from the JCI increase graph starting from April
2020. An increase in the number of investors, especially retail investors, can have a
positive impact on the capital market world. Hopefully in the following years, transactions
in the capital market can be healthier with more retail investors. For this reason, retail
investors also need to pay attention to the reasons for making transactions, not just buying
and selling but digging deeper information about the issuer through fundamental and
technical information. In addition, investors must also be mentally prepared for conditions
like this pandemic. A good emotional state is needed to deal with situations with negative
trends like today, and also during positive trends. Make sure to use "cold" money in
making stock transactions, i.e. money that is not a daily dependency. During this pandemic,
there are still investors who consider stocks to be the same as gambling and make extreme
decisions to sell their homes or seek loans in order to make transactions in the stock
market. Keep your sanity when trading in the capital market (Fadly, 2021).
Conclusions and Suggestions
From the previous explanation, it can be concluded that consumer behavior in
making decisions in investing during the Covid-19 pandemic is determined by several
factors, among others: price, psychology and personal factors of investors. Investment
decision making to buy shares on the grounds that there is the right opportunity because
stock prices have fallen during the covid-19 pandemic. The reason investors decided to
invest during the covid-19 pandemic is the estimation that by buying shares at a low price
at this time they can sell them when the price rises after the pandemic.
Covid-19 has been wreaking havoc in the world since it was discovered in Wuhan
China in late 2019. Not only does it affect human health and way of life but also the
economy and stock market. A stock market crash is inevitable due to COVID-19. Many
businesses closed/bankrupted, unemployment soared, poverty increased, and fear struck
many investors so many investors sold their shares causing stock prices to plummet across
the board.
Before the Covid-19 pandemic, global economic conditions still showed positive
growth. Although before Covid-19, the global economy was enveloped by several threats,
namely geopolitical tensions between the United States and Iran, the trade war between the
United States and the European Union triggered by the EU green deal, the trade war
between the United States and China and the unfinished Brexit issue. However, overall the
global economic conditions before the Covid-19 pandemic were still good and prospective
for investment. Not only the global economy is still positive, even before the pandemic, the
national economy was still quite good as seen from the JCI in early January which had
touched 6300, this is one of the good and interesting achievements for Indonesia. Not only
that, the national economic outlook is also still stable, economic growth is at a level of five
to five and a half percent. Then the regulations made by the government, the condition of
the rupiah which tends to be more stable and our good foreign exchange reserves are an
attraction for investors to invest in Indonesia (Fakhrunnas, 2020).
The covid-19 virus in Indonesia was first discovered around early or mid-March.
After the virus was discovered, the JCI trend declined. Because at that time it appeared
Covid-19 issues are starting to spread from Wuhan to Japan, Korea and Singapore which is
the closest country to Indonesia. So this decline caused our JCI to decline to below the
4000 level. This decline is of course also inseparable from the sentiment of investors who
saw that the Indonesian government at that time was not serious in dealing with Covid-19
so that when the health crisis occurred and these sentiments existed, making investors
prefer to withdraw their funds from the capital market so that it certainly made stock prices
decline. The movement of the capital market if this is an investment will be greatly
influenced by the company. When PSBB occurred, many companies collapsed. If we look
at today, the companies listed in the capital market, which play a role in the tourism sector,
are all negative. So if we look at it, it is not only the financial aspect of the company that
has been hit by the covid-19 pandemic, but also the real and fundamental aspects have also
been affected. So it is only natural that stock prices have fallen or even now stock prices
are not performing as well as before the pandemic (Fakhrunnas, 2020).
Fluctuations in the capital market affect investor behavior in investing because we
analyze the capital market not only by looking at numbers, but we also look at the
behavioral finance or behavioral economics aspects of an investor. If the investor tends to
be a risk-averse or even moderate investor, then perhaps the investor will choose to
withdraw his funds from the capital market and then invest his funds in the Patricia,
Cisneros scheme or investment instruments that are save haven or investments that have a
low level of risk, for example gold. If the investor is a risk taker, maybe he will continue to
maintain his investment (Fakhrunnas, 2020).
From the results of research (Ningsih, 2021) analyzing the behavior of FAC
investors registered at the Sharia Investment Gallery (GIS) of the Indonesia Stock
Exchange (BEI) of the State Islamic Institute (IAIN) Bengkulu who invested in the capital
market during the Covid-19 pandemic in making investment decisions based on price
factors, psychological factors, and investor personal factors. For the price factor, the
behavior of FAC investors registered in the GIS BEI IAIN Bengkulu in making trades is
locked in on prices, both past prices and current prices. Price is a consideration for
investors in selling or buying even though information about price is not relevant in
decision making. For psychological factors, it was found that FAC investors registered in
the GIS BEI IAIN Bengkulu have social behavior of interaction with other investors,
because most investors are influenced by information from other investors or other parties.
Theory reveals that psychological factors affect the financial behavior of investors. One of
the psychological factors is social interaction. Social interaction can influence investors'
decisions in making transactions.
From Fadly's presentation, (2021) public statistical data issued by PT Kustodian
Sentral Efek Indonesia (KSEI) in January 2021 shows a significant increase in the number
of capital market investors. Data at the end of 2018 to the end of 2019 shows an increase in
the number of investors from 1,619,372 to 2,484,354. This increase of 53.41% is still lower
than the data from the end of 2019 to 2020. By the end of 2020, the number of investors
had reached 3,880,753 despite the ongoing pandemic. This indicates that business in the
capital market is more people's choice than the real business which is in a slump during
this pandemic due to Large-Scale Social Restrictions (PSBB). The decline of JCI from the
6300 area to the 3900 area within three months shows that the pandemic is indeed very
severe. Meanwhile, on March 31, 2020 the signing of Government Regulation Number 21
of 2020, which regulates PSBB as a response to covid-19, was just done. Investor response
in this condition is quite diverse from several forums or social media. There are pros and
cons who argue that JCI will still go down, there are also those who argue that JCI will still
go down will rebound among investors. Despite the high increase in the number of
investors, the number of transaction volumes in 2019 is still more than in 2020. In 2019,
the transaction volume was 36,534,971,048, while in 2020 it was 27,495,947,445. This
reflects that most investor behavior tends to wait and see, waiting for the right time to
make transactions.
Market conditions have high volatility when viewed from transactions per day or
per week in the second to third quarter of 2020. Investors who are commonly called
"traders" take advantage of this condition by making fast transactions of course
accompanied by high risk. March was the month with the highest volatility in 2020 with
the highest index area of 5,700 and the lowest area of 3,900. In addition, in the fourth
quarter, October to be precise, began to show a rebound so that the JCI could return to the
6,000 area. In general, from March to December 2020 the JCI began to show price stability
despite a decline in September. The Government's strategy in imposing the PSBB was
appropriate although a little late seeing from the JCI increase graph starting from April
2020. An increase in the number of investors, especially retail investors, can have a
positive impact on the capital market world. Hopefully in the following years, transactions
in the capital market can be healthier with more retail investors. For this reason, retail
investors also need to pay attention to the reasons for making transactions, not just buying
and selling but digging deeper information about the issuer through fundamental and
technical information. In addition, investors must also be mentally prepared for conditions
like this pandemic. A good emotional state is needed to deal with situations with negative
trends like today, and also during positive trends. Make sure to use "cold" money in
making stock transactions, i.e. money that is not a daily dependency. During this pandemic,
there are still investors who consider stocks to be the same as gambling and make extreme
decisions to sell their homes or seek loans in order to make transactions in the stock
market. Keep your sanity when trading in the capital market (Fadly, 2021).
Conclusions and Suggestions
From the previous explanation, it can be concluded that consumer behavior in
making decisions in investing during the Covid-19 pandemic is determined by several
factors, among others: price, psychology and personal factors of investors. Investment
decision making to buy shares on the grounds that there is the right opportunity because
stock prices have fallen during the covid-19 pandemic. The reason investors decided to
invest during the covid-19 pandemic is the estimation that by buying shares at a low price
at this time they can sell them when the price rises after the pandemic.
Covid-19 has been wreaking havoc in the world since it was discovered in Wuhan
China in late 2019. Not only does it affect human health and way of life but also the
economy and stock market. A stock market crash is inevitable due to COVID-19. Many
businesses closed/bankrupted, unemployment soared, poverty increased, and fear struck
many investors so many investors sold their shares causing stock prices to plummet across
the board.
Before the Covid-19 pandemic, global economic conditions still showed positive
growth. Although before Covid-19, the global economy was enveloped by several threats,
namely geopolitical tensions between the United States and Iran, the trade war between the
United States and the European Union triggered by the EU green deal, the trade war
between the United States and China and the unfinished Brexit issue. However, overall the
global economic conditions before the Covid-19 pandemic were still good and prospective
for investment. Not only the global economy is still positive, even before the pandemic, the
national economy was still quite good as seen from the JCI in early January which had
touched 6300, this is one of the good and interesting achievements for Indonesia. Not only
that, the national economic outlook is also still stable, economic growth is at a level of five
to five and a half percent. Then the regulations made by the government, the condition of
the rupiah which tends to be more stable and our good foreign exchange reserves are an
attraction for investors to invest in Indonesia (Fakhrunnas, 2020).
The covid-19 virus in Indonesia was first discovered around early or mid-March.
After the virus was discovered, the JCI trend declined. Because at that time it appeared
Covid-19 issues are starting to spread from Wuhan to Japan, Korea and Singapore which is
the closest country to Indonesia. So this decline caused our JCI to decline to below the
4000 level. This decline is of course also inseparable from the sentiment of investors who
saw that the Indonesian government at that time was not serious in dealing with Covid-19
so that when the health crisis occurred and these sentiments existed, making investors
prefer to withdraw their funds from the capital market so that it certainly made stock prices
decline. The movement of the capital market if this is an investment will be greatly
influenced by the company. When PSBB occurred, many companies collapsed. If we look
at today, the companies listed in the capital market, which play a role in the tourism sector,
are all negative. So if we look at it, it is not only the financial aspect of the company that
has been hit by the covid-19 pandemic, but also the real and fundamental aspects have also
been affected. So it is only natural that stock prices have fallen or even now stock prices
are not performing as well as before the pandemic (Fakhrunnas, 2020).
Fluctuations in the capital market affect investor behavior in investing because we
analyze the capital market not only by looking at numbers, but we also look at the
behavioral finance or behavioral economics aspects of an investor. If the investor tends to
be a risk-averse or even moderate investor, then perhaps the investor will choose to
withdraw his funds from the capital market and then invest his funds in the Patricia,
Cisneros scheme or investment instruments that are save haven or investments that have a
low level of risk, for example gold. If the investor is a risk taker, maybe he will continue to
maintain his investment (Fakhrunnas, 2020).
From the results of research (Ningsih, 2021) analyzing the behavior of FAC
investors registered at the Sharia Investment Gallery (GIS) of the Indonesia Stock
Exchange (BEI) of the State Islamic Institute (IAIN) Bengkulu who invested in the capital
market during the Covid-19 pandemic in making investment decisions based on price
factors, psychological factors, and investor personal factors. For the price factor, the
behavior of FAC investors registered in the GIS BEI IAIN Bengkulu in making trades is
locked in on prices, both past prices and current prices. Price is a consideration for
investors in selling or buying even though information about price is not relevant in
decision making. For psychological factors, it was found that FAC investors registered in
the GIS BEI IAIN Bengkulu have social behavior of interaction with other investors,
because most investors are influenced by information from other investors or other parties.
Theory reveals that psychological factors affect the financial behavior of investors. One of
the psychological factors is social interaction. Social interaction can influence investors'
decisions in making transactions.
From Fadly's presentation, (2021) public statistical data issued by PT Kustodian
Sentral Efek Indonesia (KSEI) in January 2021 shows a significant increase in the number
of capital market investors. Data at the end of 2018 to the end of 2019 shows an increase in
the number of investors from 1,619,372 to 2,484,354. This increase of 53.41% is still lower
than the data from the end of 2019 to 2020. By the end of 2020, the number of investors
had reached 3,880,753 despite the ongoing pandemic. This indicates that business in the
capital market is more people's choice than the real business which is in a slump during
this pandemic due to Large-Scale Social Restrictions (PSBB). The decline of JCI from the
6300 area to the 3900 area within three months shows that the pandemic is indeed very
severe. Meanwhile, on March 31, 2020 the signing of Government Regulation Number 21
of 2020, which regulates PSBB as a response to covid-19, was just done. Investor response
in this condition is quite diverse from several forums or social media. There are pros and
cons who argue that JCI will still go down, there are also those who argue that JCI will still
go down will rebound among investors. Despite the high increase in the number of
investors, the number of transaction volumes in 2019 is still more than in 2020. In 2019,
the transaction volume was 36,534,971,048, while in 2020 it was 27,495,947,445. This
reflects that most investor behavior tends to wait and see, waiting for the right time to
make transactions.
Market conditions have high volatility when viewed from transactions per day or
per week in the second to third quarter of 2020. Investors who are commonly called
"traders" take advantage of this condition by making fast transactions of course
accompanied by high risk. March was the month with the highest volatility in 2020 with
the highest index area of 5,700 and the lowest area of 3,900. In addition, in the fourth
quarter, October to be precise, began to show a rebound so that the JCI could return to the
6,000 area. In general, from March to December 2020 the JCI began to show price stability
despite a decline in September. The Government's strategy in imposing the PSBB was
appropriate although a little late seeing from the JCI increase graph starting from April
2020. An increase in the number of investors, especially retail investors, can have a
positive impact on the capital market world. Hopefully in the following years, transactions
in the capital market can be healthier with more retail investors. For this reason, retail
investors also need to pay attention to the reasons for making transactions, not just buying
and selling but digging deeper information about the issuer through fundamental and
technical information. In addition, investors must also be mentally prepared for conditions
like this pandemic. A good emotional state is needed to deal with situations with negative
trends like today, and also during positive trends. Make sure to use "cold" money in
making stock transactions, i.e. money that is not a daily dependency. During this pandemic,
there are still investors who consider stocks to be the same as gambling and make extreme
decisions to sell their homes or seek loans in order to make transactions in the stock
market. Keep your sanity when trading in the capital market (Fadly, 2021).
Conclusions and Suggestions
From the previous explanation, it can be concluded that consumer behavior in
making decisions in investing during the Covid-19 pandemic is determined by several
factors, among others: price, psychology and personal factors of investors. Investment
decision making to buy shares on the grounds that there is the right opportunity because
stock prices have fallen during the covid-19 pandemic. The reason investors decided to
invest during the covid-19 pandemic is the estimation that by buying shares at a low price
at this time they can sell them when the price rises after the pandemic.
Covid-19 has been wreaking havoc in the world since it was discovered in Wuhan
China in late 2019. Not only does it affect human health and way of life but also the
economy and stock market. A stock market crash is inevitable due to COVID-19. Many
businesses closed/bankrupted, unemployment soared, poverty increased, and fear struck
many investors so many investors sold their shares causing stock prices to plummet across
the board.
Before the Covid-19 pandemic, global economic conditions still showed positive
growth. Although before Covid-19, the global economy was enveloped by several threats,
namely geopolitical tensions between the United States and Iran, the trade war between the
United States and the European Union triggered by the EU green deal, the trade war
between the United States and China and the unfinished Brexit issue. However, overall the
global economic conditions before the Covid-19 pandemic were still good and prospective
for investment. Not only the global economy is still positive, even before the pandemic, the
national economy was still quite good as seen from the JCI in early January which had
touched 6300, this is one of the good and interesting achievements for Indonesia. Not only
that, the national economic outlook is also still stable, economic growth is at a level of five
to five and a half percent. Then the regulations made by the government, the condition of
the rupiah which tends to be more stable and our good foreign exchange reserves are an
attraction for investors to invest in Indonesia (Fakhrunnas, 2020).
The covid-19 virus in Indonesia was first discovered around early or mid-March.
After the virus was discovered, the JCI trend declined. Because at that time it appeared
Covid-19 issues are starting to spread from Wuhan to Japan, Korea and Singapore which is
the closest country to Indonesia. So this decline caused our JCI to decline to below the
4000 level. This decline is of course also inseparable from the sentiment of investors who
saw that the Indonesian government at that time was not serious in dealing with Covid-19
so that when the health crisis occurred and these sentiments existed, making investors
prefer to withdraw their funds from the capital market so that it certainly made stock prices
decline. The movement of the capital market if this is an investment will be greatly
influenced by the company. When PSBB occurred, many companies collapsed. If we look
at today, the companies listed in the capital market, which play a role in the tourism sector,
are all negative. So if we look at it, it is not only the financial aspect of the company that
has been hit by the covid-19 pandemic, but also the real and fundamental aspects have also
been affected. So it is only natural that stock prices have fallen or even now stock prices
are not performing as well as before the pandemic (Fakhrunnas, 2020).
Fluctuations in the capital market affect investor behavior in investing because we
analyze the capital market not only by looking at numbers, but we also look at the
behavioral finance or behavioral economics aspects of an investor. If the investor tends to
be a risk-averse or even moderate investor, then perhaps the investor will choose to
withdraw his funds from the capital market and then invest his funds in the Patricia,
Cisneros scheme or investment instruments that are save haven or investments that have a
low level of risk, for example gold. If the investor is a risk taker, maybe he will continue to
maintain his investment (Fakhrunnas, 2020).
From the results of research (Ningsih, 2021) analyzing the behavior of FAC
investors registered at the Sharia Investment Gallery (GIS) of the Indonesia Stock
Exchange (BEI) of the State Islamic Institute (IAIN) Bengkulu who invested in the capital
market during the Covid-19 pandemic in making investment decisions based on price
factors, psychological factors, and investor personal factors. For the price factor, the
behavior of FAC investors registered in the GIS BEI IAIN Bengkulu in making trades is
locked in on prices, both past prices and current prices. Price is a consideration for
investors in selling or buying even though information about price is not relevant in
decision making. For psychological factors, it was found that FAC investors registered in
the GIS BEI IAIN Bengkulu have social behavior of interaction with other investors,
because most investors are influenced by information from other investors or other parties.
Theory reveals that psychological factors affect the financial behavior of investors. One of
the psychological factors is social interaction. Social interaction can influence investors'
decisions in making transactions.
From Fadly's presentation, (2021) public statistical data issued by PT Kustodian
Sentral Efek Indonesia (KSEI) in January 2021 shows a significant increase in the number
of capital market investors. Data at the end of 2018 to the end of 2019 shows an increase in
the number of investors from 1,619,372 to 2,484,354. This increase of 53.41% is still lower
than the data from the end of 2019 to 2020. By the end of 2020, the number of investors
had reached 3,880,753 despite the ongoing pandemic. This indicates that business in the
capital market is more people's choice than the real business which is in a slump during
this pandemic due to Large-Scale Social Restrictions (PSBB). The decline of JCI from the
6300 area to the 3900 area within three months shows that the pandemic is indeed very
severe. Meanwhile, on March 31, 2020 the signing of Government Regulation Number 21
of 2020, which regulates PSBB as a response to covid-19, was just done. Investor response
in this condition is quite diverse from several forums or social media. There are pros and
cons who argue that JCI will still go down, there are also those who argue that JCI will still
go down will rebound among investors. Despite the high increase in the number of
investors, the number of transaction volumes in 2019 is still more than in 2020. In 2019,
the transaction volume was 36,534,971,048, while in 2020 it was 27,495,947,445. This
reflects that most investor behavior tends to wait and see, waiting for the right time to
make transactions.
Market conditions have high volatility when viewed from transactions per day or
per week in the second to third quarter of 2020. Investors who are commonly called
"traders" take advantage of this condition by making fast transactions of course
accompanied by high risk. March was the month with the highest volatility in 2020 with
the highest index area of 5,700 and the lowest area of 3,900. In addition, in the fourth
quarter, October to be precise, began to show a rebound so that the JCI could return to the
6,000 area. In general, from March to December 2020 the JCI began to show price stability
despite a decline in September. The Government's strategy in imposing the PSBB was
appropriate although a little late seeing from the JCI increase graph starting from April
2020. An increase in the number of investors, especially retail investors, can have a
positive impact on the capital market world. Hopefully in the following years, transactions
in the capital market can be healthier with more retail investors. For this reason, retail
investors also need to pay attention to the reasons for making transactions, not just buying
and selling but digging deeper information about the issuer through fundamental and
technical information. In addition, investors must also be mentally prepared for conditions
like this pandemic. A good emotional state is needed to deal with situations with negative
trends like today, and also during positive trends. Make sure to use "cold" money in
making stock transactions, i.e. money that is not a daily dependency. During this pandemic,
there are still investors who consider stocks to be the same as gambling and make extreme
decisions to sell their homes or seek loans in order to make transactions in the stock
market. Keep your sanity when trading in the capital market (Fadly, 2021).
Conclusions and Suggestions
From the previous explanation, it can be concluded that consumer behavior in
making decisions in investing during the Covid-19 pandemic is determined by several
factors, among others: price, psychology and personal factors of investors. Investment
decision making to buy shares on the grounds that there is the right opportunity because
stock prices have fallen during the covid-19 pandemic. The reason investors decided to
invest during the covid-19 pandemic is the estimation that by buying shares at a low price
at this time they can sell them when the price rises after the pandemic.
Covid-19 has been wreaking havoc in the world since it was discovered in Wuhan
China in late 2019. Not only does it affect human health and way of life but also the
economy and stock market. A stock market crash is inevitable due to COVID-19. Many
businesses closed/bankrupted, unemployment soared, poverty increased, and fear struck
many investors so many investors sold their shares causing stock prices to plummet across
the board.
Before the Covid-19 pandemic, global economic conditions still showed positive
growth. Although before Covid-19, the global economy was enveloped by several threats,
namely geopolitical tensions between the United States and Iran, the trade war between the
United States and the European Union triggered by the EU green deal, the trade war
between the United States and China and the unfinished Brexit issue. However, overall the
global economic conditions before the Covid-19 pandemic were still good and prospective
for investment. Not only the global economy is still positive, even before the pandemic, the
national economy was still quite good as seen from the JCI in early January which had
touched 6300, this is one of the good and interesting achievements for Indonesia. Not only
that, the national economic outlook is also still stable, economic growth is at a level of five
to five and a half percent. Then the regulations made by the government, the condition of
the rupiah which tends to be more stable and our good foreign exchange reserves are an
attraction for investors to invest in Indonesia (Fakhrunnas, 2020).
The covid-19 virus in Indonesia was first discovered around early or mid-March.
After the virus was discovered, the JCI trend declined. Because at that time it appeared
Covid-19 issues are starting to spread from Wuhan to Japan, Korea and Singapore which is
the closest country to Indonesia. So this decline caused our JCI to decline to below the
4000 level. This decline is of course also inseparable from the sentiment of investors who
saw that the Indonesian government at that time was not serious in dealing with Covid-19
so that when the health crisis occurred and these sentiments existed, making investors
prefer to withdraw their funds from the capital market so that it certainly made stock prices
decline. The movement of the capital market if this is an investment will be greatly
influenced by the company. When PSBB occurred, many companies collapsed. If we look
at today, the companies listed in the capital market, which play a role in the tourism sector,
are all negative. So if we look at it, it is not only the financial aspect of the company that
has been hit by the covid-19 pandemic, but also the real and fundamental aspects have also
been affected. So it is only natural that stock prices have fallen or even now stock prices
are not performing as well as before the pandemic (Fakhrunnas, 2020).
Fluctuations in the capital market affect investor behavior in investing because we
analyze the capital market not only by looking at numbers, but we also look at the
behavioral finance or behavioral economics aspects of an investor. If the investor tends to
be a risk-averse or even moderate investor, then perhaps the investor will choose to
withdraw his funds from the capital market and then invest his funds in the Patricia,
Cisneros scheme or investment instruments that are save haven or investments that have a
low level of risk, for example gold. If the investor is a risk taker, maybe he will continue to
maintain his investment (Fakhrunnas, 2020).
From the results of research (Ningsih, 2021) analyzing the behavior of FAC
investors registered at the Sharia Investment Gallery (GIS) of the Indonesia Stock
Exchange (BEI) of the State Islamic Institute (IAIN) Bengkulu who invested in the capital
market during the Covid-19 pandemic in making investment decisions based on price
factors, psychological factors, and investor personal factors. For the price factor, the
behavior of FAC investors registered in the GIS BEI IAIN Bengkulu in making trades is
locked in on prices, both past prices and current prices. Price is a consideration for
investors in selling or buying even though information about price is not relevant in
decision making. For psychological factors, it was found that FAC investors registered in
the GIS BEI IAIN Bengkulu have social behavior of interaction with other investors,
because most investors are influenced by information from other investors or other parties.
Theory reveals that psychological factors affect the financial behavior of investors. One of
the psychological factors is social interaction. Social interaction can influence investors'
decisions in making transactions.
From Fadly's presentation, (2021) public statistical data issued by PT Kustodian
Sentral Efek Indonesia (KSEI) in January 2021 shows a significant increase in the number
of capital market investors. Data at the end of 2018 to the end of 2019 shows an increase in
the number of investors from 1,619,372 to 2,484,354. This increase of 53.41% is still lower
than the data from the end of 2019 to 2020. By the end of 2020, the number of investors
had reached 3,880,753 despite the ongoing pandemic. This indicates that business in the
capital market is more people's choice than the real business which is in a slump during
this pandemic due to Large-Scale Social Restrictions (PSBB). The decline of JCI from the
6300 area to the 3900 area within three months shows that the pandemic is indeed very
severe. Meanwhile, on March 31, 2020 the signing of Government Regulation Number 21
of 2020, which regulates PSBB as a response to covid-19, was just done. Investor response
in this condition is quite diverse from several forums or social media. There are pros and
cons who argue that JCI will still go down, there are also those who argue that JCI will still
go down will rebound among investors. Despite the high increase in the number of
investors, the number of transaction volumes in 2019 is still more than in 2020. In 2019,
the transaction volume was 36,534,971,048, while in 2020 it was 27,495,947,445. This
reflects that most investor behavior tends to wait and see, waiting for the right time to
make transactions.
Market conditions have high volatility when viewed from transactions per day or
per week in the second to third quarter of 2020. Investors who are commonly called
"traders" take advantage of this condition by making fast transactions of course
accompanied by high risk. March was the month with the highest volatility in 2020 with
the highest index area of 5,700 and the lowest area of 3,900. In addition, in the fourth
quarter, October to be precise, began to show a rebound so that the JCI could return to the
6,000 area. In general, from March to December 2020 the JCI began to show price stability
despite a decline in September. The Government's strategy in imposing the PSBB was
appropriate although a little late seeing from the JCI increase graph starting from April
2020. An increase in the number of investors, especially retail investors, can have a
positive impact on the capital market world. Hopefully in the following years, transactions
in the capital market can be healthier with more retail investors. For this reason, retail
investors also need to pay attention to the reasons for making transactions, not just buying
and selling but digging deeper information about the issuer through fundamental and
technical information. In addition, investors must also be mentally prepared for conditions
like this pandemic. A good emotional state is needed to deal with situations with negative
trends like today, and also during positive trends. Make sure to use "cold" money in
making stock transactions, i.e. money that is not a daily dependency. During this pandemic,
there are still investors who consider stocks to be the same as gambling and make extreme
decisions to sell their homes or seek loans in order to make transactions in the stock
market. Keep your sanity when trading in the capital market (Fadly, 2021).
Conclusions and Suggestions
From the previous explanation, it can be concluded that consumer behavior in
making decisions in investing during the Covid-19 pandemic is determined by several
factors, among others: price, psychology and personal factors of investors. Investment
decision making to buy shares on the grounds that there is the right opportunity because
stock prices have fallen during the covid-19 pandemic. The reason investors decided to
invest during the covid-19 pandemic is the estimation that by buying shares at a low price
at this time they can sell them when the price rises after the pandemic.
Covid-19 has been wreaking havoc in the world since it was discovered in Wuhan
China in late 2019. Not only does it affect human health and way of life but also the
economy and stock market. A stock market crash is inevitable due to COVID-19. Many
businesses closed/bankrupted, unemployment soared, poverty increased, and fear struck
many investors so many investors sold their shares causing stock prices to plummet across
the board.
Before the Covid-19 pandemic, global economic conditions still showed positive
growth. Although before Covid-19, the global economy was enveloped by several threats,
namely geopolitical tensions between the United States and Iran, the trade war between the
United States and the European Union triggered by the EU green deal, the trade war
between the United States and China and the unfinished Brexit issue. However, overall the
global economic conditions before the Covid-19 pandemic were still good and prospective
for investment. Not only the global economy is still positive, even before the pandemic, the
national economy was still quite good as seen from the JCI in early January which had
touched 6300, this is one of the good and interesting achievements for Indonesia. Not only
that, the national economic outlook is also still stable, economic growth is at a level of five
to five and a half percent. Then the regulations made by the government, the condition of
the rupiah which tends to be more stable and our good foreign exchange reserves are an
attraction for investors to invest in Indonesia (Fakhrunnas, 2020).
The covid-19 virus in Indonesia was first discovered around early or mid-March.
After the virus was discovered, the JCI trend declined. Because at that time it appeared
Covid-19 issues are starting to spread from Wuhan to Japan, Korea and Singapore which is
the closest country to Indonesia. So this decline caused our JCI to decline to below the
4000 level. This decline is of course also inseparable from the sentiment of investors who
saw that the Indonesian government at that time was not serious in dealing with Covid-19
so that when the health crisis occurred and these sentiments existed, making investors
prefer to withdraw their funds from the capital market so that it certainly made stock prices
decline. The movement of the capital market if this is an investment will be greatly
influenced by the company. When PSBB occurred, many companies collapsed. If we look
at today, the companies listed in the capital market, which play a role in the tourism sector,
are all negative. So if we look at it, it is not only the financial aspect of the company that
has been hit by the covid-19 pandemic, but also the real and fundamental aspects have also
been affected. So it is only natural that stock prices have fallen or even now stock prices
are not performing as well as before the pandemic (Fakhrunnas, 2020).
Fluctuations in the capital market affect investor behavior in investing because we
analyze the capital market not only by looking at numbers, but we also look at the
behavioral finance or behavioral economics aspects of an investor. If the investor tends to
be a risk-averse or even moderate investor, then perhaps the investor will choose to
withdraw his funds from the capital market and then invest his funds in the Patricia,
Cisneros scheme or investment instruments that are save haven or investments that have a
low level of risk, for example gold. If the investor is a risk taker, maybe he will continue to
maintain his investment (Fakhrunnas, 2020).
From the results of research (Ningsih, 2021) analyzing the behavior of FAC
investors registered at the Sharia Investment Gallery (GIS) of the Indonesia Stock
Exchange (BEI) of the State Islamic Institute (IAIN) Bengkulu who invested in the capital
market during the Covid-19 pandemic in making investment decisions based on price
factors, psychological factors, and investor personal factors. For the price factor, the
behavior of FAC investors registered in the GIS BEI IAIN Bengkulu in making trades is
locked in on prices, both past prices and current prices. Price is a consideration for
investors in selling or buying even though information about price is not relevant in
decision making. For psychological factors, it was found that FAC investors registered in
the GIS BEI IAIN Bengkulu have social behavior of interaction with other investors,
because most investors are influenced by information from other investors or other parties.
Theory reveals that psychological factors affect the financial behavior of investors. One of
the psychological factors is social interaction. Social interaction can influence investors'
decisions in making transactions.
From Fadly's presentation, (2021) public statistical data issued by PT Kustodian
Sentral Efek Indonesia (KSEI) in January 2021 shows a significant increase in the number
of capital market investors. Data at the end of 2018 to the end of 2019 shows an increase in
the number of investors from 1,619,372 to 2,484,354. This increase of 53.41% is still lower
than the data from the end of 2019 to 2020. By the end of 2020, the number of investors
had reached 3,880,753 despite the ongoing pandemic. This indicates that business in the
capital market is more people's choice than the real business which is in a slump during
this pandemic due to Large-Scale Social Restrictions (PSBB). The decline of JCI from the
6300 area to the 3900 area within three months shows that the pandemic is indeed very
severe. Meanwhile, on March 31, 2020 the signing of Government Regulation Number 21
of 2020, which regulates PSBB as a response to covid-19, was just done. Investor response
in this condition is quite diverse from several forums or social media. There are pros and
cons who argue that JCI will still go down, there are also those who argue that JCI will still
go down will rebound among investors. Despite the high increase in the number of
investors, the number of transaction volumes in 2019 is still more than in 2020. In 2019,
the transaction volume was 36,534,971,048, while in 2020 it was 27,495,947,445. This
reflects that most investor behavior tends to wait and see, waiting for the right time to
make transactions.
Market conditions have high volatility when viewed from transactions per day or
per week in the second to third quarter of 2020. Investors who are commonly called
"traders" take advantage of this condition by making fast transactions of course
accompanied by high risk. March was the month with the highest volatility in 2020 with
the highest index area of 5,700 and the lowest area of 3,900. In addition, in the fourth
quarter, October to be precise, began to show a rebound so that the JCI could return to the
6,000 area. In general, from March to December 2020 the JCI began to show price stability
despite a decline in September. The Government's strategy in imposing the PSBB was
appropriate although a little late seeing from the JCI increase graph starting from April
2020. An increase in the number of investors, especially retail investors, can have a
positive impact on the capital market world. Hopefully in the following years, transactions
in the capital market can be healthier with more retail investors. For this reason, retail
investors also need to pay attention to the reasons for making transactions, not just buying
and selling but digging deeper information about the issuer through fundamental and
technical information. In addition, investors must also be mentally prepared for conditions
like this pandemic. A good emotional state is needed to deal with situations with negative
trends like today, and also during positive trends. Make sure to use "cold" money in
making stock transactions, i.e. money that is not a daily dependency. During this pandemic,
there are still investors who consider stocks to be the same as gambling and make extreme
decisions to sell their homes or seek loans in order to make transactions in the stock
market. Keep your sanity when trading in the capital market (Fadly, 2021).
Conclusions and Suggestions
From the previous explanation, it can be concluded that consumer behavior in
making decisions in investing during the Covid-19 pandemic is determined by several
factors, among others: price, psychology and personal factors of investors. Investment
decision making to buy shares on the grounds that there is the right opportunity because
stock prices have fallen during the covid-19 pandemic. The reason investors decided to
invest during the covid-19 pandemic is the estimation that by buying shares at a low price
at this time they can sell them when the price rises after the pandemic.
Covid-19 has been wreaking havoc in the world since it was discovered in Wuhan
China in late 2019. Not only does it affect human health and way of life but also the
economy and stock market. A stock market crash is inevitable due to COVID-19. Many
businesses closed/bankrupted, unemployment soared, poverty increased, and fear struck
many investors so many investors sold their shares causing stock prices to plummet across
the board.
Before the Covid-19 pandemic, global economic conditions still showed positive
growth. Although before Covid-19, the global economy was enveloped by several threats,
namely geopolitical tensions between the United States and Iran, the trade war between the
United States and the European Union triggered by the EU green deal, the trade war
between the United States and China and the unfinished Brexit issue. However, overall the
global economic conditions before the Covid-19 pandemic were still good and prospective
for investment. Not only the global economy is still positive, even before the pandemic, the
national economy was still quite good as seen from the JCI in early January which had
touched 6300, this is one of the good and interesting achievements for Indonesia. Not only
that, the national economic outlook is also still stable, economic growth is at a level of five
to five and a half percent. Then the regulations made by the government, the condition of
the rupiah which tends to be more stable and our good foreign exchange reserves are an
attraction for investors to invest in Indonesia (Fakhrunnas, 2020).
The covid-19 virus in Indonesia was first discovered around early or mid-March.
After the virus was discovered, the JCI trend declined. Because at that time it appeared
Covid-19 issues are starting to spread from Wuhan to Japan, Korea and Singapore which is
the closest country to Indonesia. So this decline caused our JCI to decline to below the
4000 level. This decline is of course also inseparable from the sentiment of investors who
saw that the Indonesian government at that time was not serious in dealing with Covid-19
so that when the health crisis occurred and these sentiments existed, making investors
prefer to withdraw their funds from the capital market so that it certainly made stock prices
decline. The movement of the capital market if this is an investment will be greatly
influenced by the company. When PSBB occurred, many companies collapsed. If we look
at today, the companies listed in the capital market, which play a role in the tourism sector,
are all negative. So if we look at it, it is not only the financial aspect of the company that
has been hit by the covid-19 pandemic, but also the real and fundamental aspects have also
been affected. So it is only natural that stock prices have fallen or even now stock prices
are not performing as well as before the pandemic (Fakhrunnas, 2020).
Fluctuations in the capital market affect investor behavior in investing because we
analyze the capital market not only by looking at numbers, but we also look at the
behavioral finance or behavioral economics aspects of an investor. If the investor tends to
be a risk-averse or even moderate investor, then perhaps the investor will choose to
withdraw his funds from the capital market and then invest his funds in the Patricia,
Cisneros scheme or investment instruments that are save haven or investments that have a
low level of risk, for example gold. If the investor is a risk taker, maybe he will continue to
maintain his investment (Fakhrunnas, 2020).
From the results of research (Ningsih, 2021) analyzing the behavior of FAC
investors registered at the Sharia Investment Gallery (GIS) of the Indonesia Stock
Exchange (BEI) of the State Islamic Institute (IAIN) Bengkulu who invested in the capital
market during the Covid-19 pandemic in making investment decisions based on price
factors, psychological factors, and investor personal factors. For the price factor, the
behavior of FAC investors registered in the GIS BEI IAIN Bengkulu in making trades is
locked in on prices, both past prices and current prices. Price is a consideration for
investors in selling or buying even though information about price is not relevant in
decision making. For psychological factors, it was found that FAC investors registered in
the GIS BEI IAIN Bengkulu have social behavior of interaction with other investors,
because most investors are influenced by information from other investors or other parties.
Theory reveals that psychological factors affect the financial behavior of investors. One of
the psychological factors is social interaction. Social interaction can influence investors'
decisions in making transactions.
From Fadly's presentation, (2021) public statistical data issued by PT Kustodian
Sentral Efek Indonesia (KSEI) in January 2021 shows a significant increase in the number
of capital market investors. Data at the end of 2018 to the end of 2019 shows an increase in
the number of investors from 1,619,372 to 2,484,354. This increase of 53.41% is still lower
than the data from the end of 2019 to 2020. By the end of 2020, the number of investors
had reached 3,880,753 despite the ongoing pandemic. This indicates that business in the
capital market is more people's choice than the real business which is in a slump during
this pandemic due to Large-Scale Social Restrictions (PSBB). The decline of JCI from the
6300 area to the 3900 area within three months shows that the pandemic is indeed very
severe. Meanwhile, on March 31, 2020 the signing of Government Regulation Number 21
of 2020, which regulates PSBB as a response to covid-19, was just done. Investor response
in this condition is quite diverse from several forums or social media. There are pros and
cons who argue that JCI will still go down, there are also those who argue that JCI will still
go down will rebound among investors. Despite the high increase in the number of
investors, the number of transaction volumes in 2019 is still more than in 2020. In 2019,
the transaction volume was 36,534,971,048, while in 2020 it was 27,495,947,445. This
reflects that most investor behavior tends to wait and see, waiting for the right time to
make transactions.
Market conditions have high volatility when viewed from transactions per day or
per week in the second to third quarter of 2020. Investors who are commonly called
"traders" take advantage of this condition by making fast transactions of course
accompanied by high risk. March was the month with the highest volatility in 2020 with
the highest index area of 5,700 and the lowest area of 3,900. In addition, in the fourth
quarter, October to be precise, began to show a rebound so that the JCI could return to the
6,000 area. In general, from March to December 2020 the JCI began to show price stability
despite a decline in September. The Government's strategy in imposing the PSBB was
appropriate although a little late seeing from the JCI increase graph starting from April
2020. An increase in the number of investors, especially retail investors, can have a
positive impact on the capital market world. Hopefully in the following years, transactions
in the capital market can be healthier with more retail investors. For this reason, retail
investors also need to pay attention to the reasons for making transactions, not just buying
and selling but digging deeper information about the issuer through fundamental and
technical information. In addition, investors must also be mentally prepared for conditions
like this pandemic. A good emotional state is needed to deal with situations with negative
trends like today, and also during positive trends. Make sure to use "cold" money in
making stock transactions, i.e. money that is not a daily dependency. During this pandemic,
there are still investors who consider stocks to be the same as gambling and make extreme
decisions to sell their homes or seek loans in order to make transactions in the stock
market. Keep your sanity when trading in the capital market (Fadly, 2021).
Conclusions and Suggestions
From the previous explanation, it can be concluded that consumer behavior in
making decisions in investing during the Covid-19 pandemic is determined by several
factors, among others: price, psychology and personal factors of investors. Investment
decision making to buy shares on the grounds that there is the right opportunity because
stock prices have fallen during the covid-19 pandemic. The reason investors decided to
invest during the covid-19 pandemic is the estimation that by buying shares at a low price
at this time they can sell them when the price rises after the pandemic.
