Jakarta – Indonesia’s stock market has recently faced turbulence, as reflected in the sharp decline of the Jakarta Composite Index (IHSG), which has dropped by more than 7% over the past week. As of the second trading session on Tuesday (February 11, 2025), the index had fallen below the psychological threshold of 6,500.
The downturn in the stock market is largely attributed to global uncertainties and geopolitical dynamics, which have significantly influenced investor sentiment. According to Mandiri Sekuritas, one of Indonesia’s leading securities firms, around 35% to 40% of investors in the domestic capital market are foreign investors, making the market highly sensitive to external factors.
Oki Ramadhana, President Director of Mandiri Sekuritas, emphasized that fluctuations in the global economic landscape and geopolitical developments play a crucial role in determining whether foreign investors choose to enter or exit Indonesia’s stock market.
“The global situation and geopolitical dynamics are key factors influencing investors’ decisions on whether to stay in or move out of a market, including Indonesia,” Oki stated during the Mandiri Investment Forum (MIF) 2025 press conference on Tuesday (February 11, 2025).
Despite the market volatility, Indonesia’s economic fundamentals remain robust, particularly within the banking sector and other key industries. Oki reassured investors that the current downturn is not a reflection of structural weaknesses in Indonesia’s stock market, but rather a response to broader global uncertainties.
Furthermore, Oki underscored that Indonesia remains a highly favorable destination for investment, citing the country’s business-friendly environment and legal certainty. One of the key reasons why foreign investors continue to retain their assets in Indonesia is the country’s strong growth trajectory.
According to Oki, President Prabowo Subianto’s administration has set an ambitious target of achieving 8% economic growth, a vision that aligns with the expansion strategies of many Indonesian corporations. This forward-looking approach has provided a sense of optimism and stability for investors who are seeking long-term gains in the region.
“Every company in Indonesia is currently exploring opportunities—both organic and inorganic—to accelerate their growth in line with the national economic agenda,” Oki explained.
As a result, despite short-term volatility, Indonesia remains an attractive destination for foreign investors, driven by its strong economic fundamentals, clear growth prospects, and commitment to long-term development.
While external factors may continue to influence market fluctuations, analysts believe that Indonesia’s resilience and long-term potential will ensure that the country remains a key player in the global investment landscape.
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