Indonesian Composite Index Reaches New Record High

Domestic Investors Drive Market Momentum

The Indonesian Composite Index (IHSG) has achieved a significant milestone by surpassing previous records to reach 8,617.04 on Tuesday's trading session. This market performance was primarily driven by strong domestic investor participation, which accounted for 70% of the total trading activity on that day. The dominance of local investors is not just a short-term phenomenon but a consistent trend observed throughout the year.

Year-to-Date Domestic Investor Dominance

The data from the Indonesia Stock Exchange (BEI) reveals that domestic investors have maintained their strong presence in the market throughout the current year. On a year-to-date basis, domestic investors contributed 64% of the total transaction value, while foreign investors accounted for the remaining 36%. This significant participation underscores the growing importance of local investors in shaping the Indonesian capital market landscape.

Market Implications

The continued dominance of domestic investors in the Indonesian stock market has several important implications for market dynamics. Firstly, it indicates a strong confidence among local investors in the domestic economy and corporate performance. Secondly, it suggests a growing maturity of the Indonesian capital market as local investors become more influential. The market's ability to reach new highs despite global economic uncertainties demonstrates its resilience and the positive outlook of domestic participants.