OJK Highlights LQ45 Index Underperformance in 2025

Significant Performance Gap Observed

The Financial Services Authority (OJK) Chairman Mahendra Siregar highlighted the underwhelming performance of the LQ45 index during 2025. The index, which tracks Indonesia's largest and most liquid stocks, recorded a modest growth of 2.41% for the year. This performance stands in stark contrast to the broader Composite Stock Price Index (IHSG), which saw a substantial increase of 22.13% over the same period.

Implications for Market Performance

The significant performance gap between the LQ45 index and the IHSG suggests that while the overall market showed strong growth, the returns were not evenly distributed across different segments. Mahendra Siregar noted that the relatively weak performance of the LQ45 index indicates potential for future appreciation. The LQ45 index comprises blue-chip stocks that are typically considered stable investments and are often used as benchmarks by both domestic and international fund managers.

Market Context and Future Outlook

The OJK Chairman's remarks during the Indonesia Stock Exchange trading opening ceremony on January 2, 2026, underscore the importance of monitoring the performance of key market indices. The underperformance of the LQ45 index relative to the IHSG may be attributed to various factors, including sectoral rotation and investor preferences for smaller-cap stocks that are not part of the LQ45 index.

The observation that the LQ45 index has lagged behind the broader market could signal opportunities for investors looking to capitalize on potentially undervalued large-cap stocks. As the market continues to evolve, the OJK's monitoring of these trends will be crucial in ensuring market stability and investor confidence.