Indonesia’s capital market is riding a wave of optimism in 2025, buoyed by solid macroeconomic fundamentals and improving global financial sentiment. The Jakarta Composite Index (IHSG) has posted double-digit growth, while fundraising and investor participation continue to expand. These trends reflect the resilience and evolving maturity of Indonesia’s financial ecosystem.
Key Facts & Background
- As of October 2, 2025, the Jakarta Composite Index (IHSG) rose 14.08% year-to-date, reaching 8,078.93.
- The growth is attributed to strong domestic economic fundamentals and expectations of global financial recovery.
- Fundraising in the capital market reached Rp167.92 trillion by August 29, 2025, with 144 effective registration approvals granted by the Financial Services Authority (OJK).
- An additional 21 public offering pipelines are in progress, with an indicative value of Rp19.07 trillion.
- OJK targets total fundraising of Rp220 trillion for 2025—down 17.83% from 2024’s realization but 10% higher than the previous year’s target.
- The Indonesia Stock Exchange (BEI) recorded 23 new listings by September 29, 2024, raising Rp15.05 trillion.
- Eleven companies are preparing for IPOs, including:
- 7 mid-sized firms (assets Rp50–250 billion)
- 4 large firms (assets above Rp250 billion)
- IPO candidates span diverse sectors:
- Raw materials (2)
- Non-primary consumer goods (1)
- Primary consumer goods (1)
- Financial services (2)
- Industrial (2)
- Technology (1)
- Transportation and logistics (2)
- Investor participation continues to grow, with 18.02 million registered investors as of August 2025.
Strategic Insights
Indonesia’s capital market performance in 2025 underscores the country’s growing financial sophistication and investor confidence. The 14.08% rise in the IHSG reflects not only favorable macroeconomic conditions but also the market’s ability to absorb global volatility and domestic policy shifts. This resilience is critical as Indonesia seeks to position itself as a regional financial hub and attract long-term institutional capital.
The robust fundraising activity, despite a slightly lower target compared to the previous year, signals healthy demand for capital and a vibrant pipeline of public offerings. The diversity of IPO candidates—from raw materials to technology—suggests broad sectoral confidence and a deepening of the equity market. Mid-sized and large enterprises entering the market indicate that capital markets are becoming a viable financing avenue beyond traditional bank lending.
Investor growth is another cornerstone of this momentum. With over 18 million investors, the democratization of market access is accelerating, driven by digital platforms, financial literacy campaigns, and favorable demographics. This expanding base not only enhances liquidity but also fosters a culture of long-term savings and investment, essential for sustainable economic development.
Strategically, the capital market’s performance aligns with Indonesia’s broader economic goals: mobilizing domestic savings, supporting enterprise growth, and reducing reliance on foreign debt. As global investors seek emerging market exposure, Indonesia’s transparent regulatory framework and improving corporate governance make it an attractive destination. Continued reforms—such as simplifying listing procedures, enhancing disclosure standards, and integrating ESG metrics—will be key to maintaining this trajectory.