Executive Summary

Key insights and market outlook

The Indonesian stock market's contribution to GDP rose to 72% in 2025 from 56% in 2024, according to OJK Chairman Mahendra Siregar ²

³. Retail investor transactions increased to 50% of total trading volume, the highest among regional markets ¹. Despite this growth, Indonesia lags behind India (140%), Thailand (101%), and Malaysia (97%) in terms of market capitalization to GDP ratio ².

Full Analysis

02

Deep Dive Analysis

Indonesia's Capital Market Shows Strong Growth Amid Regulatory Focus

Significant Increase in Retail Participation

The Indonesian capital market has demonstrated robust growth, with the Otoritas Jasa Keuangan (OJK) reporting that the stock market's contribution to GDP surged to 72% in 2025, up from 56% in 2024 ²

³. This growth was accompanied by a significant increase in retail investor participation, with their transactions rising to 50% of total trading volume on the Indonesia Stock Exchange (BEI) ¹.

Comparative Analysis with Regional Markets

While this represents a substantial increase, OJK Chairman Mahendra Siregar noted that Indonesia still lags behind other regional markets. The contribution of the stock market to GDP in India stands at around 140%, 101% in Thailand, and 97% in Malaysia ²

³. Despite this, Indonesia's retail investor participation rate is notably higher than these countries ¹.

Market Performance and Future Targets

The Indonesian Composite Index (IHSG) closed at 8,646.94 on December 30, 2025, representing a 22.13% increase for the year ³

. However, the LQ45 index, which tracks the country's blue-chip stocks, grew by only 2.41% during the same period, indicating a divergence in market performance between broader market indices and large-cap stocks ³.

Regulatory Focus and Market Development

The OJK is focusing on strengthening market integrity while promoting growth. Mahendra Siregar emphasized the need to protect retail investors from practices such as stock manipulation and unfair trading practices ¹

. The BEI has set ambitious targets, including entering the top 10 global stock exchanges within five years and achieving a daily average trading value of Rp 15 trillion by 2026 ³.

References