Executive Summary

Key insights and market outlook

The Indonesian stock market, measured by the Indeks Harga Saham Gabungan (IHSG), ended 2025 on a mixed note, with a year-to-date increase of 22.13% ¹

. Despite facing challenges, including global economic uncertainty, the IHSG managed to reach 24 all-time highs throughout the year ². As investors look to 2026, they await the presence of President Prabowo Subianto at the opening of the Indonesia Stock Exchange (BEI) for signals on the government's support for the capital market ³.

Full Analysis

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Deep Dive Analysis

Indonesian Stock Market 2025 Review

Mixed Closing but Positive Year-to-Date Performance

The Indonesian stock market, as represented by the IHSG, closed 2025 with a mixed performance but overall positive year-to-date increase of 22.13% ¹

. This growth is significant, considering the global economic challenges faced during the year. The IHSG's ability to reach 24 all-time highs in 2025 is a testament to the resilience of the Indonesian capital market ².

Global Economic Uncertainty and Its Impact

Despite the positive overall performance, the market faced considerable pressure from global economic uncertainty. The trade tensions and tariff disputes between major economies affected investor sentiment and led to periods of volatility in the market ⁴

. However, the Indonesian market demonstrated its capacity to absorb external shocks and continue on a growth trajectory.

President Prabowo's Expected Presence at BEI 2026 Opening

As the market enters 2026, all eyes are on the upcoming opening of the Indonesia Stock Exchange (BEI), where President Prabowo Subianto is expected to be present ³

. The president's attendance is seen as a significant gesture of the government's commitment to the development of the capital market. Analysts believe that such gestures can boost investor confidence and contribute to a positive market sentiment ⁵.

Prospects for 2026

Looking ahead to 2026, market analysts predict a continued mixed performance with limited room for significant growth ⁶

. The market's liquidity is expected to remain relatively low, which could impact the volatility of stock prices. However, the overall trend is anticipated to remain positive, driven by the ongoing recovery of the global economy and the implementation of supportive domestic policies ⁷.

References