Overseas fund invests in Indonesia amid 30% stock index slide
Summary
The 30% decline in Indonesia’s benchmark stock index this year has led a Swedish fund to invest in the country for the first time. This decision comes amidst ongoing pressure on Indonesian equities, attributed to domestic policy shifts and global economic challenges. Recently, cabinet changes have further influenced market sentiment, encouraging discussions between the government and international investors, which may contribute to a renewed interest in Indonesian stocks perceived as undervalued after a prolonged period of underperformance.
Analysis
Indonesia: Indonesia is a major emerging market economy and the largest archipelago nation in the world, located in Southeast Asia. Its benchmark stock index, known as the IHSG or Jakarta Composite Index, has drawn international investor interest following recent market declines. The country’s policy environment under President Prabowo Subianto has become a focal point for overseas funds evaluating entry opportunities. Investor Activity: Overseas asset managers are beginning to view Indonesian stocks as offering value after an extended period of underperformance. Market Performance: Indonesian equities have continued to face pressure from domestic policy shifts and global economic factors in recent weeks. Policy Environment: Recent cabinet changes have influenced market sentiment while prompting dialogue between the government and international investors.
Categories
macro
Related sources
- https://www.bloombergtechnoz.com/detail-news/123370/penyebab-ihsg-ditutup-melemah-di-6-009/2
- https://www.idntimes.com/business/economy/prabowo-kembali-reshuffle-kabinet-ihsg-berakhir-tertekan-00-gshdq-4kz14v
- https://market.bisnis.com/read/20261001/7/2008957/ihsg-melemah-102-di-awal-oktober-saham-konglomerat-berguguran
- https://www.bloomberg.com/news/articles/2026-06-05/-sell-indonesia-sweeps-trading-desks-as-prabowo-tightens-grip
- https://jakartaglobe.id/business/indonesian-stocks-sink-1-as-inflation-nears-bis-upper-target
- https://www.bloomberg.com/news/features/2026-03-16/inside-indonesia-sovereign-wealth-fund-danantara-s-turbulent-first-year
- https://www.bloomberg.com/news/articles/2026-02-02/foreign-investors-dumped-indonesia-sovereign-debt-as-stocks-slid
- https://theedgemalaysia.com/node/820289