Despite Monday’s turnaround, foreign investors still recorded a net sell of $5.98 million in IDX, adding up to the year-to-date net sell register of $3.8 billion.
An electronic display board inside the main hall of the Indonesia Stock Exchange (IDX) in South Jakarta shows an overall downward movement across most stocks during the lunch break on Jan. 29, 2026, when the IDX Composite index fell 6.3 percent after MSCI raised concerns about its free float and trading transparency. (TJP/Deni Ghifari)
Indonesian equity and foreign exchange markets have shown signs of rebounding after Iran and the United States agreed to a peace deal, but economists argue that the trend does not necessarily signal a full return of investor confidence in the country.The rupiah’s 0.9 percent appreciation at Monday’s close made it the strongest-performing currency in Southeast Asia, trading at Rp 17,711 per US dollar compared with Rp 17,870 before last weekend.
Likewise, the Indonesia Stock Exchange (IDX) Composite index posted gains, rising 4.12 percent from 6,118 at Monday’s opening to 6,254 by the close, recovering from a recent multi-year low of 5,342 on June 8.
Asked if the positive trend that had lasted for about a week meant Indonesia is out of the woods, Economist Intelligence Unit (EIU) Asia analyst Tay Qi Hang told The Jakarta Post on Tuesday “not yet”.
