IDX: Economic Fundamentals and Transparency Reforms Strengthen Indonesia's Investment Appeal

Amid global financial market uncertainty, Indonesia is still considered to have appeal as a long-term investment destination. Solid economic fundamentals, a large domestic market, and transparency reforms in the capital market are factors that sustain investor confidence in the national economic prospects. President Director of the Indonesia Stock Exchange (IDX), Jeffrey Hendrik, stated that the current market conditions must be viewed comprehensively by considering the national economic fundamentals, the performance of listed companies, and various reforms being carried out by regulators and Self-Regulatory Organizations (SRO). “Various reform measures carried out by regulators and SROs are part of the commitment to enhance transparency, strengthen governance, and build an increasingly credible capital market,” Jeffrey said. As the largest economy in Southeast Asia, Indonesia possesses several structural advantages that serve as long-term growth drivers. These include a population exceeding 284.4 million, a demographic bonus, and strategic natural resource wealth such as nickel, copper, gold, liquefied natural gas (LNG), and palm oil, positioning the country as a key player in the global supply chain. The national economic performance continues to demonstrate resilience. In the first quarter of 2026, Indonesia’s economy grew by 5.61 percent, supported by strong household consumption, sustained government spending, and increased investment activity. Various macroeconomic indicators also reflect positive conditions, including a manufacturing sector that remains in expansionary territory, a continuous trade surplus, and rising investment realisation. These conditions have helped underpin the Indonesian capital market. Although the Composite Stock Price Index (IHSG) has experienced several corrections throughout 2026, trading activity on the IDX has remained resilient, and investor participation has been maintained amidst global market volatility.