The Indonesia Stock Exchange (IDX) is one of the capital markets in

Indonesia which is managed by the government with the legal status of a State-
Owned Enterprise (BUMN). IDX is a company that provides a means to bring
together offers and buys and sells of shares and other securities. Stock is one of
the products that can be marketed through the IDX. One of the conditions is the
deposit of financial statements by companies listed on the IDX. The financial
report aims to provide information to shareholders and the public. Shares
according to paper proof of ownership of capital or funds in a company clearly
stated nominal value, company name and followed by clear rights and obligations
to each holder (Fahmi and Hadi, 2012). Companies, both private and government
or state-owned companies, usually sell and buy shares to get capital. Shares are
traded on the capital market as a long-term financial instrument. The higher the
value of a company's stock price, in general, will represent the higher the value of
the company.

1. What is the main role of the Indonesia Stock Exchange (IDX) in the
Indonesian capital market system?

2. Why do companies listed on the IDX have to submit financial statements,

and who are the primary audiences for these reports?

3. How is stock defined in the context of the Indonesian capital market, and
what is the purpose of trading stocks?

4. What is the impact of an increase in a company's stock price on the overall

value of the company?

5. What are the differences between private and government-owned

companies when it comes to buying and selling shares in the Indonesian
capital market?

Financial statement analysis is one way that can be used by users of

financial statements to be able to improve the information. The information has
been written in the financial statements so that it can be used as information that is
more useful in decision making. One of the financial analyzes is ratio analysis,
which is to compare the numbers contained in the financial statements by dividing
one number by another (Kasmir, 2013). The results of the comparison of these
figures can be used to assess the company's management performance. Investors
can use these ratios as a basis for making a decision whether the investor will buy
shares or invest in the company or not. The decision is based on what kind of ratio
is used and what the investor actually wants because each of the ratios relates
information to one another. This ratio can be calculated using the information
contained in the financial statements such as the statement of financial position
and income statement.

1. How does financial statement analysis contribute to improving the

usefulness of information for decision-making by users of financial
statements?

2. What is ratio analysis, and how does it help in assessing a company's

management performance?

3. How do investors use the results of ratio analysis to make decisions

regarding buying shares or investing in a company?

4. What financial statements are typically used as a source of information for

calculating these ratios, and how are they used in the analysis?

5. Can you provide an example of a specific ratio that investors commonly

use in their decision-making process, and how does it relate to the
information presented in the financial statements?