Indonesian Stock Market Poised for Strength in December 2025

Positive Market Indicators

The Indonesian Composite Stock Price Index (IHSG) is expected to maintain its upward momentum in December 2025, supported by several key factors. According to a recent research report by BRI Danareksa Sekuritas, the IHSG has shown an 80% probability of rising during December over the past decade, establishing it as historically the most bullish month for the Indonesian stock market.

Drivers of Market Growth

1. Window Dressing Activities: The traditional year-end window dressing is expected to provide significant support to the market.
2. Potential Federal Reserve Rate Cuts: Expectations of interest rate reductions by the Federal Reserve are creating positive sentiment among investors.
3. Santa Claus Rally Effect: Historical patterns suggest a tendency for markets to perform well in the final days of December.
4. Year-end Foreign Fund Flows: Analysts anticipate increased foreign investment activity as the year concludes.

Analyst Insights

BRI Danareksa Sekuritas analysts emphasize that the combination of these factors creates a favorable environment for the IHSG. 'Momentum window dressing, Santa Claus rally, dan arus dana asing akhir tahun biasanya mendorong performa positif pasar,' according to their research report. The historical data supporting December's bullish trend provides additional confidence for investors considering market entry or portfolio adjustments.