Strong Domestic Investor Base Seen as Buffer Against JSX Volatility

JAKARTA — Economist Analyst at the Indonesian Stock Exchange Anita Kesia Zonebia believes that a strong domestic investor base can cushion capital market shocks resulting from global uncertainty. This is supported by data demonstrating an increasing composition of domestic investor ownership.

Based on compiled data, the number of capital market investors reached 23.47 million as of early March 2026. Of these, 9.2 million were stock investors. This figure represents a sixfold increase compared to 2020, when the investor base stood at 3.88 million.

The number of annually active investors reached 2 million. This figure is projected to continue increasing throughout 2026 and has potential to surpass the 2.56 million foreign investors recorded in 2025.

Data on active investors reveals increased transaction activity on daily, weekly and monthly bases. On a daily basis, the investor count reached 518,000, up from 252,000 in 2025. On a weekly basis, investor numbers reached 1.07 million, rising sharply from 481,000 in 2025. Similarly, on a monthly basis, investors numbered 1.28 million, increasing significantly from 908,000 the previous year.

Zonebia continued, noting that the investor composition data records an increase in local investor ownership, although the composition data was only updated as of January 2026.

“We find that approximately 16.8 percent is held by retail investors, whilst the remainder is held by institutional investors split between 41.2 percent from local sources and 41.9 percent from foreign sources,” she stated. Investor types are divided into three categories: local institutional investors, foreign institutional investors and retail investors.

Based on historical data, the composition of retail investors and local domestic institutional investors has experienced quite significant growth. Retail investor ownership in January 2026 stood at 16.8 percent, up from 13.1 percent in 2020.

Meanwhile, local investor ownership reached 41.2 percent, up from 37.8 percent in 2020. Foreign investor ownership composition reached 41.9 percent, lower than the 49.1 percent composition in 2020.

“This demonstrates positive development because it means our retail investor base and domestic investor base are growing larger. Consequently, they are expected to serve as a shock absorber or cushion in the event of global shocks or external factors affecting foreign investor movement,” she explained.