Indonesian Market Sees Sector Rotation as Year-End Approaches

Strong Performance in Key Sectors

The Indonesian Composite Index (IHSG) rose 0.8% to 8,617 on December 2, 2025, marking a year-to-date (YTD) increase of 21.71%. As the year draws to a close, investors are preparing for window dressing activities, which is expected to drive sector rotation in the market.

Sector Performance Highlights

The technology sector leads the gains with a remarkable 155.09% YTD increase, positioning it as the top performer in the Indonesian stock market. The industrial sector follows with an 81.75% YTD growth, while the infrastructure sector shows robust performance with a 60.19% YTD increase. In contrast, the financial sector and consumer non-cyclical sector have shown relatively slower growth, rising by 9.77% and 10% YTD respectively as of December 2, 2025.

Market Implications

The observed sector rotation suggests that investors are actively rebalancing their portfolios in anticipation of year-end window dressing. This period typically sees fund managers adjusting their holdings to present favorable year-end positions. The strong performance of technology and industrial sectors indicates continued investor confidence in these growth areas, while the relatively slower performance of traditional sectors like finance may present potential opportunities for value investors.