Indonesian Stock Market Shows Strong Start to 2026

Positive Market Momentum Continues

The Indonesian Composite Stock Price Index (IHSG) has demonstrated a robust start to 2026, with the index rising 0.65% to 8,804.84 on January 5, 2026 ⁷

. This follows a 1.17% gain to 8,748.13 on the first trading day of the year, marking a record high closing ⁵

Source 5

https://finance.detik.com/bursa-dan-valas/d-8292130/ihsg-menguat-di-awal-2026-inet-siapkan-rights-issue-hrum-perpanjang-buyback

. The positive momentum is supported by various factors including improved economic prospects and significant foreign capital inflows ²

Source 2

https://nasional.kontan.co.id/news/rupiah-diproyeksi-stabil-di-2026-ditopang-arus-modal-asing-dan-prospek-ekonomi

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Sectoral Performance

Key sectors driving the market's growth include:

• Energy sector: Up 2.12% on January 5, 2026 ⁷
  Source 7

  https://investasi.kontan.co.id/news/ihsg-naik-065-ke-8804-pada-sesi-i-senin-51-bumi-inco-antm-top-gainers-lq45
• Raw materials sector: Rose 1.67% on the same day ⁷
  Source 7

  https://investasi.kontan.co.id/news/ihsg-naik-065-ke-8804-pada-sesi-i-senin-51-bumi-inco-antm-top-gainers-lq45
• Transportation sector: Showed significant growth of 3.22% ⁷
  Source 7

  https://investasi.kontan.co.id/news/ihsg-naik-065-ke-8804-pada-sesi-i-senin-51-bumi-inco-antm-top-gainers-lq45

These sectoral gains have been consistent with the overall market trend, contributing to the IHSG's positive performance. The energy and raw materials sectors have been particularly strong, driven by commodity prices and increased investor interest ⁴

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Market Breadth and Trading Activity

On January 5, 2026, market breadth was positive with 362 stocks rising against 302 that declined ⁷

. The total transaction value in the first session reached Rp 4.72 trillion, involving 9.59 billion shares traded across 675,837 transactions ³

Source 3

https://finance.detik.com/bursa-dan-valas/d-8292175/awal-pekan-2026-ihsg-bergerak-dekati-level-8-800

. This active trading environment reflects growing investor confidence in the market.

Foreign Investor Activity

Foreign investors continued their buying spree in the Indonesian market. On the first trading day of 2026, they recorded a net buy of Rp 1.14 trillion in the regular market and Rp 1.06 trillion across all markets ⁵

. This sustained foreign investment has been a crucial factor supporting the IHSG's upward trajectory.

Analyst Outlook

Analysts from Infovesta Kapital Advisori Ekky Topan suggest that the IHSG is likely to remain positive throughout January 2026, with the potential for the 'January Effect' to continue ¹

. The improved economic outlook, better governance, and enhanced investment climate are cited as key factors supporting this positive prognosis ²

Source 2

https://nasional.kontan.co.id/news/rupiah-diproyeksi-stabil-di-2026-ditopang-arus-modal-asing-dan-prospek-ekonomi

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Conclusion

The strong start to 2026 for the Indonesian stock market reflects broader positive trends in the economy and investor sentiment. With continued foreign investment and favorable sectoral performance, the outlook for the IHSG remains optimistic.