IDX Optimistic JCI Remains Positive Despite Next Year's Elections

Illustration (Photo: Doc. Antara)

JAKARTA - PT Bursa Efek Indonesia (IDX) is optimistic that the capital market in 2024 and the performance of the Composite Stock Price Index (JCI) will remain positive amid the general election (Pemilu) in 2024.

This is supported by improving market conditions driven by global sentiment.

President Director of the Indonesia Stock Exchange, Iman Rachman, said that historically the Composite Stock Price Index (JCI) experienced growth during the election period.

"We are not talking about indexes during the political year but various economic conditions such as motgage crisis, China trade war, and risk of recurrence and inflation. The exchange has a lot of price fluctuations, but in the long term, more than 5 years the trend is positive," said Iman at the 2023 IDX Trading Closing Press Conference, Friday, December 29.

Historically, until December 28, 2023, the JCI grew 6.62 percent year on year (yoy).

Meanwhile, at the 2019 election, the JCI had strengthened 1.70 percent.

Sedankan pada tahun 2014, pertumbuhan IHSG mencapai 22.29 persen.

In the 2004 election, the JCI grew 44.56 percent (yoy). Then the JCI rose in 2009 by 88.98 percent on an annual basis.

Iman hopes that the JCI's performance next year will continue to increase along with the high consumption of the public in the coming political year.

In addition, the performance of issuers can grow, especially companies from the consumption, communication and banking sectors.

"Of course we hope that in the political year there will be an increase in the performance of issuers who grow positively in the consumption sector, the communication sector and banking, this is because of increased consumption because there is a presidential election," he said.

On the other hand, foreign net buys also experienced growth in the 2009 election, foreign investors recorded a net buy of IDR 13.29 trillion.

This figure continued to increase in 2014, which scored a foreign net buy of IDR 42.60 trillion.

Finally, in 2019, foreign net buys reached IDR 49.20 trillion.

As for December 28, foreign investors still recorded a net sell of IDR 7.06 trillion.

However, Iman remains optimistic that there will still be foreign opportunities to print a net buy again.

"Indeed, now it is still a net sell, but compared to the transactions of Indonesian capital market bonds, it is still experiencing growth," he explained.

For information, next year the IDX also targets the average daily transaction value (RNTH) of IDR 12.25 trillion.

This figure is up 14 percent from the revised and realization figures this year which are at IDR 10.75 trillion.