Foreign investors are increasingly allocating capital to Indonesian equities, driven by improved macroeconomic indicators and policy stability. The shift marks a reversal from recent outflows and signals growing confidence in Southeast Asia's largest economy.
- Net inflows into Indonesia’s equities reached $280 million in late November to early December 2025
- IDX.JK index rose 3.2% month-over-month to close at 7,312 on December 7
- BBCA.JK and BBRI.JK shares gained 7.4% and 6.1% respectively in 14 days
- UNVR.JK rose 5.8% on stronger consumer demand and pricing resilience
- Foreign ownership in IDX.JK reached 28.6%, a multi-year peak
- Economic fundamentals improved with 5.3% Q3 GDP growth and tighter monetary policy
Global fund flows into Indonesia’s equity market have turned positive in the past week, with net inflows reaching $280 million as of December 7, 2025, according to recent trading data. This marks a significant turnaround from the net outflows of $140 million recorded in November, reflecting renewed investor optimism. The improvement is anchored in stronger-than-expected GDP growth of 5.3% year-on-year in the third quarter, coupled with a resilient consumer sector and tighter monetary policy from Bank Indonesia. Financial institutions, including BBCA.JK (Bank Central Asia) and BBRI.JK (Bank Rakyat Indonesia), have seen their shares rise 7.4% and 6.1% respectively over the past 14 days, driven by improved credit quality and rising loan demand. Consumer staples player UNVR.JK (Unilever Indonesia) has also gained 5.8%, benefiting from stable household consumption and pricing power. The Jakarta Composite Index (IDX.JK) closed at 7,312 on December 7, up 3.2% from the previous month’s low, signaling broad-based market enthusiasm. Analysts note that foreign ownership levels in the IDX.JK now stand at 28.6%, a multi-year high, indicating deeper institutional participation. The shift is particularly notable in the financials and consumer sectors, which are seen as key beneficiaries of domestic demand recovery. As global investors rebalance emerging market portfolios ahead of 2026, Indonesia has emerged as a top pick for capital allocation, especially among ESG-conscious funds seeking stable growth in Southeast Asia.