JCI Projected to Break 9,000, OJK: Need to Balance Vigilance

Illustration. (Photo: Dok. Antara)

JAKARTA - The Financial Services Authority (OJK) assesses that market optimism towards the projection of the Composite Stock Price Index (IHSG) breaking through the 9,000 level by the end of the year needs to be balanced with vigilance against market volatility.

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Head of Capital Market, Derivatives Finance, and Carbon Exchange Supervisory Authority, OJK Inarno Djajadi, said the performance of the JCI was inseparable from the national macroeconomic conditions, including economic growth and financial sector stability.

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"OJK sees the strengthening of the JCI throughout 2025 supported by relatively solid domestic economic fundamentals, including maintained economic growth and financial sector stability," Inarno said in an official statement, Sunday, December 14.

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However, Inarno emphasized that the movement of the JCI was also greatly influenced by external factors. Global dynamics and market sentiment are considered potentially triggering fluctuations in the short term.

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"The movement of the JCI is also influenced by global dynamics and market sentiment," he said.

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Therefore, according to Inarno, market participants' optimism needs to be accompanied by good risk management, especially in the face of potential short-term volatility.

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"Optimism about the market still needs to be balanced with vigilance against short-term volatility and good risk management by investors," he concluded.

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Previously, Minister of Finance Purbaya Yudhi Sadewa expressed optimism that the JCI has the opportunity to break through the level of 9,000 by the end of 2025, even potentially reaching 32,000 in the long term.

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Purbaya explained that every statement and policy issued by the government will be scrutinized by market participants and reflected in investment portfolio decisions.

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He also admitted that there was still a phenomenon of gorengan stocks that could cause distortions to the movement of the index, especially due to artificially high prices.

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Even so, Purbaya remains optimistic because there are still many stocks with strong fundamentals and large market capitalizations that are the main support for the JCI.

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"That's why the index can rise. If you ask me how is the JCI? To the moon I say. How much is it at the end of the year? 9,000," he said in the Sarasehan 100 Indonesian Economists, Tuesday, October 28.

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Furthermore, Purbaya estimates that the JCI has the potential to break through the level of 32,000 within the next 10 years, provided that economic growth and financial stability remain maintained.