Jakarta – Over the past week, the Jakarta Composite Index (IHSG) has witnessed a sharp decline exceeding 7%, with the index slipping below the 6,500 mark during the second trading session on Tuesday (February 11, 2025). This downturn has raised concerns among investors, particularly those who closely monitor market trends and economic stability. However, financial experts urge investors to take a broader perspective, as Indonesia’s economic trajectory continues to reflect strong fundamentals and long-term growth potential.
The recent market fluctuations are largely driven by external factors, including heightened geopolitical risks and global economic uncertainties. Given that 35% to 40% of investors in Indonesia’s capital markets are foreign, external developments play a significant role in shaping market movements. As global investors reassess their portfolios in response to shifting economic conditions, Indonesia has inevitably felt the impact of these adjustments.
Oki Ramadhana, President Director of Mandiri Sekuritas, addressed these concerns during the Mandiri Investment Forum (MIF) 2025 press conference. While acknowledging the recent downturn, he reassured investors that Indonesia’s stock market remains fundamentally sound, particularly in key sectors such as banking, infrastructure, and consumer-driven industries. He pointed out that market corrections are a normal part of financial cycles and should not be viewed as a reflection of structural weaknesses.
Indonesia’s investment appeal is underpinned by several strategic advantages, including a transparent regulatory framework, legal certainty, and a government committed to economic progress. Oki noted that Indonesia continues to attract investors due to its pro-business environment and growth-oriented policies. Many foreign investors have chosen to retain their investments in Indonesia because of its compelling economic growth story, which remains aligned with national development goals.
A key factor supporting investor confidence is the ambitious economic growth target set by President Prabowo Subianto, which aims for an 8% annual GDP growth rate. This vision has driven companies across various industries to actively pursue expansion strategies, fostering an environment conducive to long-term investment. Oki emphasized that businesses in Indonesia are continuously seeking both organic and inorganic opportunities to accelerate their growth, ensuring that the market remains dynamic and forward-looking.
Despite the current market volatility, Indonesia continues to stand out as a preferred investment destination. Analysts remain optimistic about the country’s ability to navigate global challenges, backed by strong economic policies, resilient market fundamentals, and a clear commitment to sustainable growth. While short-term market fluctuations are inevitable, the long-term outlook for Indonesia remains promising, reinforcing its status as an attractive hub for investors seeking stability and high-growth opportunities.
