JAKARTA - The Composite Stock Price Index (JCI) opened with an increase of 1.17 percent to 8,748.13 on the first trading day of 2026.
Chief Economist IQI Global Shan Saeed assessed the surge in the index at the beginning of the year as a signal of investor confidence that is getting stronger.
"The Indonesian stock market has given very clear signals. On the first trading day of 2026, the JCI jumped 1.17 percent to 8,748.13, and this set an optimistic tone for a year that could potentially be a breakthrough year," Shan said in a statement in Jakarta, quoted by Antara, Saturday, January 3.
The strengthening strengthens the belief that Indonesia is entering a new year with solid fundamental foundations amid improving global sentiment and increasing investor interest in risky assets.
Shan added that the outlook for the Indonesian stock market in the future is considered increasingly attractive.
"The current consensus estimates a potential market increase of 8-10 percent throughout 2026, supported by robust domestic demand and increased investor confidence," he said.
In terms of valuation, he assessed that the Indonesian stock market is still below its historical average.
"For selective global investors, Indonesia is increasingly becoming a key pillar of the high-quality emerging market," Shan said.
This optimism is in line with the view of Bank Mandiri Chief Economist Andry Asmoro, who sees the strengthening of the JCI as part of the Asian regional rally.
He said the JCI increased by around 1.2 percent to 8,748 levels along with the increase in the Asian stock exchange, driven by the buy-back of shares by investors after profit taking at the end of 2025.
Andry also highlighted the domestic macro conditions which remained stable.
"Indonesian manufacturing PMI indeed declined to 51.2 in December, but it is still in the expansion zone, with domestic demand remaining the main support," he said.
In terms of cash flow, foreign investors recorded net inflows of around IDR 1.1 trillion to the stock market, while the yield on 10-year government bonds fell to 6.05 percent.
"This reflects the increasing confidence in Indonesia's macro stability," said Andry.
According to him, with the combination of strengthening the stock market, the entry of foreign funds, and the decline in bond yields, Indonesia is considered to start 2026 from a strong position.
"Credible policy support, solid domestic demand, and still attractive market valuations make Indonesia increasingly seen as a key investment destination in Southeast Asia, not just a short-term rally, but a more sustainable phase of strengthening," he said.
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