Jakarta – The Indonesian financial market has faced a sharp correction in recent weeks, with the Jakarta Composite Index (IHSG) experiencing a decline of over 7%. As trading closed on Tuesday (February 11, 2025), the index had fallen below the 6,500 benchmark, prompting concerns among local and foreign investors alike. While this downturn reflects broader market trends, financial experts urge investors to look beyond short-term fluctuations and focus on Indonesia’s robust long-term fundamentals.
The recent sell-off in Indonesia’s stock market has been heavily influenced by global macroeconomic shifts and geopolitical developments, which have created uncertainty across international markets. With a significant portion of Indonesia’s stock market participants being foreign investors, global sentiment plays a crucial role in shaping capital flows. As investors reposition their portfolios in response to international risks, Indonesia has felt the effects of these adjustments.
Oki Ramadhana, President Director of Mandiri Sekuritas, addressed these concerns during the Mandiri Investment Forum (MIF) 2025 press conference, emphasizing that Indonesia’s stock market remains fundamentally strong despite short-term volatility. He pointed out that key industries such as banking, infrastructure, and consumer sectors continue to perform well, reinforcing the overall resilience of the economy. He stressed that market corrections are a natural component of financial cycles and do not necessarily indicate weaknesses in the country’s economic structure.
Indonesia has consistently been recognized as an investment-friendly nation, offering regulatory transparency, legal stability, and business incentives. These attributes make it a preferred choice for investors looking for sustainable growth. Oki noted that many foreign investors have opted to hold onto their investments due to the country’s clear economic vision and pro-growth strategies.
A critical driver of investor confidence is the Prabowo administration’s ambitious economic growth agenda, which aims to push Indonesia’s GDP growth to 8% annually. This target has created momentum across various industries, encouraging businesses to pursue aggressive expansion plans. As a result, Indonesian corporations are actively seeking strategic partnerships, acquisitions, and other growth opportunities to capitalize on emerging market trends.
While recent market movements have raised concerns, the long-term outlook for Indonesia remains highly positive. The country’s strong economic policies, resilient industrial base, and focus on growth-driven investments continue to position it as a top destination for capital inflows. Analysts believe that investors who stay committed to the Indonesian market will benefit from its sustained economic progress and forward-thinking investment environment.
