Indonesian Stock Market Shows Resilience on First Trading Day of 2026

IHSG Surges 1.27% to 8,859

The Indonesian Composite Index (IHSG) closed up 1.27% or 111.06 points to 8,859.19 on the first trading day of 2026 ¹

. This significant rise was supported by gains in 10 out of 11 sectoral indices on the Indonesia Stock Exchange (BEI). The broad-based rally across sectors contributed to the index's strong performance.

Foreign Investor Sentiment in 2025

Despite the positive start to 2026, foreign investors recorded a net sell of Rp 17.34 trillion throughout 2025 ³

. The selling was particularly concentrated in blue-chip stocks and major banks. PT Bank Central Asia Tbk (BBCA) saw the largest net sell at Rp 30.03 trillion, followed by PT Bank Rakyat Indonesia Tbk (BBRI) at Rp 16.98 trillion and PT Bank Mandiri Tbk (BMRI) at Rp 14.75 trillion. Other stocks like PT Adaro Energy Indonesia Tbk (ADRO) and PT Bank Negara Indonesia Tbk (BBNI) also experienced significant foreign selling.

LQ45 Performance and Future Prospects

The LQ45 index, comprising Indonesia's largest and most liquid stocks, had a lackluster performance in 2025 with only a 2.41% year-to-date gain, significantly underperforming the IHSG's 22.13% rise ⁴

. Analysts attribute this to various factors including high interest rates, geopolitical uncertainties, and defensive foreign investor behavior. However, experts are optimistic about a potential rebound in 2026 driven by improved global sentiment and domestic economic factors.

Key Drivers for 2026

Several factors are expected to drive the LQ45 stocks in 2026:

1. Reversal of foreign selling: Stocks heavily sold by foreigners in 2025 could become attractive in 2026
2. Improved global economic conditions: Potential rate cuts and stabilized commodity prices
3. Domestic economic growth: Indonesia's economic fundamentals and consumption growth
4. Valuation attractiveness: Current valuations following 2025 corrections