Understanding the Indonesia Equity Market Landscape

The Indonesian equity market is a significant player in Southeast Asia, with a market capitalization of over $550 billion. This makes it the 16th largest stock market in the world.

Indonesia has a diverse economy, with a mix of industries such as manufacturing, agriculture, and services. The country is also rich in natural resources, including oil, gas, and minerals.

The Indonesian stock market has experienced significant growth over the years, with the Jakarta Composite Index (JCI) increasing by over 1,000% since 2003. This growth has been driven by a combination of factors, including a growing middle class and increasing foreign investment.

The Indonesian government has also implemented policies to attract foreign investment and promote economic growth, such as the negative list of investments, which has reduced the number of restricted sectors for foreign investment.

On a similar theme: Foreign Equity Trading

Our Financial Analysis section provides a comprehensive look at the Indonesian financial markets, offering insights into the structure of the existing financial climate. It's written by a team of economists with expertise and experience in financial subjects.

These economists analyze topics related to the Indonesian financial markets, giving readers a clear and thorough understanding of the market's performance. They write about the major players and factors that influence the market, providing valuable information for investors.

The Jakarta Composite Index (IHSG) is a key indicator of the Indonesian financial market's performance, and our Stock Market Update section provides a daily analysis of its movements and trends. Understanding the IHSG index is crucial for investors who want to stay ahead of the market.

By reading our Financial Columns, you can gain a deeper understanding of the Indonesian financial markets and make informed investment decisions. Our team of economists works with authoritative institutions to provide you with expert analysis and insights.

For your interest: Equity Market Analysis

The Indonesia Stock Exchange (IDX) is a vital part of the country's financial infrastructure, providing a platform for securities transactions.

The IDX was created by the merger of the Jakarta Stock Exchange (JSX) and the Surabaya Stock Exchange (SSX), with the JSX being Indonesia's first stock exchange, founded in 1912.

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The JSX was closed during parts of World Wars I and II, and when it reopened in 1952, the only exchanged security was the Indonesian government bond.

Regulatory changes between 1988 and 1992 improved trading activity, and the exchange introduced its automatic trading system in 1995.

The IDX saw a record number of investors in 2021, and as of 2020, it has 713 company listings.

The IDX provides the infrastructure to enable orderly, fair, and efficient trading of securities, making it a crucial part of Indonesia's equity market.

Here are some key facts about the IDX:

The Indonesia Stock Exchange (IDX) is the primary platform for securities transactions in Indonesia. It's designed to facilitate orderly, fair, and efficient trading of securities.

The IDX has made significant strides in boosting investor participation and trading activity. In 2021, it set a new record for daily trading values and frequency. This is a testament to the exchange's success in creating a conducive environment for investors.

At the end of 2020, the IDX had 713 listed companies. This diversification is likely to attract a wider range of investors and increase market liquidity.

Navigating Indonesia's tax system can be complex, so it's essential to have a comprehensive understanding of it to avoid potential disputes with the tax department.

The Indonesian tax system is not the country's most effective and clean field of governance, which is why it's crucial to be aware of its intricacies.

Corporate and individual income tax are two key areas to grasp, and the government's tax amnesty program, launched in July 2016, is also worth noting.

Disputes with the tax department can have serious consequences for your business and personal situation, making it vital to stay informed.

It's advised to read about the macroeconomic indicators of Indonesia to gain a deeper understanding of the country's economic landscape.

For more insights, see: Tax Equity Market

The Indonesia Stock Exchange (IDX) plays a crucial role in the country's financial landscape. It's a vital part of the economy, handling securities transactions for Indonesian companies.

One of the primary goals of the IDX is to provide a fair and efficient trading environment for investors. This is achieved through its infrastructure, which enables orderly trading of securities.

In 2021, the IDX saw a significant increase in the number and participation of investors. This was a notable achievement, setting a new record for daily trading values and frequency.

At the end of 2020, the IDX had a total of 713 listed companies. This is a remarkable number, showcasing the growth and diversity of the Indonesian stock market.

The IDX's success in boosting investor participation is a testament to its effectiveness in providing a fair and efficient trading environment.

We regularly release reports that provide valuable insights into the Indonesian equity market. These reports cover a range of topics, including the performance of the Jakarta Composite Index (IHSG).

Our reports are designed to help you stay up-to-date with the latest developments in the Indonesian market. For example, our December 2024 report, "Welcoming a New Year", was released on January 3, 2025.

We also cover topics such as the impact of inflation on the market and the role of demographics in driving the Indonesian economy. Rising inflationary pressures, as seen in the festive season, can have a significant impact on the market.

Additional reading: Interest Rate Impact on Equity Market

Indonesia's President Prabowo Subianto has announced a 6.5% increase in minimum wages for 2025. This move is expected to have a positive impact on the market.

Here are some of our latest reports: