Indonesian Stock Market Poised for Strong Growth in 2026

Potential US Fed Quantitative Easing to Boost Risk Assets

The Indonesian stock market is expected to experience significant growth in 2026, driven by the potential return of the US Federal Reserve's quantitative easing (QE) policy. According to capital market expert Reydi Octa, the implementation of QE would create a favorable environment for riskier assets such as stocks.

Shift in Investor Behavior

Reydi explained that QE would change investor behavior as banks and financial institutions look for higher returns on the liquidity injected by the central bank through bond purchases. "The funds will need to be placed in instruments that provide returns, which usually flow into stocks," Reydi stated. This shift is expected to provide fresh momentum for the stock market.

Implications for Indonesian Market

While the QE policy is a US-centric development, its ripple effects are likely to be felt in global markets, including Indonesia. A surge in global liquidity could lead to increased foreign investment in the Indonesian stock market, potentially driving up stock prices and market capitalization.

Market Preparedness

Investors are advised to be prepared for this potential development. With the right market conditions and supportive economic policies, the Indonesian stock market could see substantial growth in 2026. The key will be how effectively the market can capitalize on the incoming liquidity and investor sentiment.