The stock market has seen a gradual recovery despite remaining vulnerable to foreign sell-offs amid global headwinds and lingering concerns over index provider MSCI’s upcoming review, with domestic investors increasingly in the driver’s seat.
Employees watch a digital screen displaying stock movements on Jan. 28 at the Indonesia Stock Exchange (IDX) in Jakarta. (Antara/Dhemas Reviyanto)
The stock market has seen a gradual recovery despite remaining vulnerable to foreign sell-offs amid global headwinds and lingering concerns over index provider MSCI’s upcoming review, with domestic investors increasingly in the driver’s seat.The Indonesia Stock Exchange (IDX) Composite index has shown signs of a rebound following a severe drop in the first half of the year. It has been on a gradual uptrend since the middle of the year and gained 4.64 percent in the month of August alone.
The benchmark index closed at 6,541.38 points on Friday after dropping in line with other markets of the region, which is still down 25 percent since the beginning of the year, making it the worst performer among major Asian indexes.
The market rout in the first half of 2026 was triggered by a transparency warning from MSCI earlier this year, which led to panic-selling and two trading halts.
