IHSG Strengthening Reflects Indonesia's Fundamentals, BTN Calls for Real Sector Boost

JAKARTA. Danantara Indonesia views the recent strengthening of the Jakarta Composite Index (IHSG) as a reflection of investor confidence in Indonesia’s economic fundamentals. Chief Operating Officer (COO) of Danantara Indonesia and Head of BP BUMN Dony Oskaria stated that investor appreciation for the Indonesian capital market demonstrates confidence in the national economic prospects and the performance of domestic companies. “This good performance has led to a significant strengthening of the IHSG, including the rupiah which has also shown strengthening,” Dony said in a statement on Sunday (14/6/2026). He assessed that national companies, including state-owned enterprises (BUMN), still have strong fundamentals in various strategic sectors such as banking, mining, and infrastructure. This condition is an important asset to maintain investor confidence going forward.

In line with that, Bank Tabungan Negara (BTN) President Director Nixon LP Napitupulu said that optimism about economic fundamentals must be translated into stronger real sector activity, one of which is through the housing industry. In this regard, Nixon mentioned that the housing sector has a large multiplier effect on the economy because it involves many supporting sectors, from building materials to labour. “We must be able to create demand, not just wait for the market. Therefore, BTN continues to encourage various strategies so that the housing sector keeps moving and people still have access to buy homes,” he said.

Nixon added that BTN maintains optimism for business growth by upholding the principle of prudence. The bank continues to strengthen its strategy through healthy credit expansion and maintaining asset quality amidst economic and financial market dynamics. “We still believe growth can be maintained. We think of every way so that people can still own homes,” Nixon said. He assessed that the positive movement in the financial market is a good signal for the economy. However, the sustainability of national economic growth still requires support from productive sectors that are capable of creating demand, investment, and jobs. Thus, the strengthening of the capital market not only reflects investor confidence in Indonesia’s fundamentals but also needs to be accompanied by a strengthening of real economic activity so that the benefits can be felt more widely by the public.