Executive Summary

Key insights and market outlook

The Indonesian Composite Index (IHSG) weakened by 0.59% to 8,609.55 over the week ending December 19, 2025 ¹

. Despite the decline, foreign investors continued to accumulate Indonesian stocks with a net buy value of Rp 3.27 trillion for the week and Rp 2.67 trillion on Friday alone ². The week's performance was influenced by global sentiment and Bank Indonesia's decision to maintain interest rates at 4.75% ¹.

Full Analysis

02

Deep Dive Analysis

Indonesian Stock Market Weekly Review: IHSG Weakens Despite Foreign Buying

Market Performance

The Indonesian Composite Index (IHSG) closed at 8,609.55 on Friday, December 19, 2025, representing a 0.59% decline for the week ¹

. This weekly performance marked the lowest level for the index throughout December 2025. Despite the overall market decline, foreign investors demonstrated confidence in Indonesian stocks by maintaining a significant buying presence throughout the week.

Foreign Investor Activity

Foreign investors recorded a net buy position of Rp 3.27 trillion for the week, with a notable Rp 2.67 trillion net buy on Friday alone ²

. This buying activity occurred despite the overall market weakness, suggesting continued confidence in Indonesia's equity market. The substantial foreign investment inflow helped mitigate the broader market decline.

Key Stocks Influencing the Index

Several stocks significantly impacted the IHSG performance during the week:

Bayan Resources (BYAN) - contributed -21.56 points, closing at Rp 15,950
MD Entertainment (FILM) - contributed -17.79 points, closing at Rp 8,850
Telkom Indonesia (TLKM) - contributed -15.3 points, closing at Rp 3,410
Amman Mineral (AMMN) - contributed -12.72 points, closing at Rp 6,325
Bumi Resources Minerals (BRMS) - contributed -12.18 points, closing at Rp 1,130

Market Sentiment and Factors

Senior Market Analyst Nafan Aji Gusta from Mirae Asset Sekuritas attributed the IHSG correction primarily to global sentiment, particularly the market's reaction to the potential reduction in The Fed's interest rates, which is now expected to occur only once in 2026 ¹

. Additionally, Bank Indonesia's decision to maintain the interest rate at 4.75% during their December 2025 meeting contributed to the market's cautious stance. The central bank's decision was seen as leaning towards maintaining stability rather than stimulating growth.

Market Outlook

The combination of foreign investor buying activity and domestic market dynamics continues to shape the Indonesian stock market. While global factors remain a significant influence, the persistent foreign investment suggests underlying confidence in Indonesia's economic fundamentals.

References