Indonesia’s Stock Market Recovery Gains Pace as Investor Numbers Reach 31.14 Million

Indonesia’s capital market is showing signs of recovery, driven by foreign investment and a sharp rise in the number of domestic investors, the Financial Services Authority said.

The benchmark Jakarta Composite Index closed August 2026 at 6,525.48, up 4.64% from the previous month. The index had also risen 0.80%, or 49.762 points, to 6,236.126 in late-July trading, according to Indonesia Stock Exchange data.

Hasan Fawzi, the authority’s executive head for capital markets, derivatives and carbon exchanges, said foreign buying continued to support the stock market. Foreign investors recorded net purchases of 1.19 trillion rupiah in shares during August. In government bonds, foreign net purchases reached 15.35 trillion rupiah.

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The domestic stock market continued its strengthening trend in August 2026.

The number of capital-market investors climbed about 52% to 31.14 million Single Investor Identifications. The authority also said market liquidity improved, with the average bid-ask spread narrowing to 1.17% from 1.33% the previous month.

Indonesia’s Composite Bond Index ended August at 410.04, representing a monthly gain of 2.23%. Hasan described the movements in equities, bonds and liquidity as consistent with a recovery in the domestic market.

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This is in line with the direction of the domestic market’s recovery.