Indonesian Stock Market Enters Bull Market After Five-Year Low

The Jakarta Composite Index has entered a bull market, recording a gain of more than 10% since reaching a five-year low in early June 2026. This recovery follows a volatile start to the year, during which the index declined approximately 29% year-to-date.

Financial analysts attribute the rally to attractive valuations and a strong recovery in tax collection during the first half of the year. The Government of Indonesia also played a role through financial regulators who intervened to tighten ownership disclosures and increase minimum free floats to stabilize the market.

International confidence supported the trend, as S&P Global reaffirmed Indonesia's BBB sovereign rating with a stable outlook. Additionally, MSCI decided to maintain Indonesia's status as an emerging market, avoiding a downgrade to frontier status.

Despite the overall bull market trend, the index has faced recent headwinds. Reports indicate a short-term losing streak of four sessions, with the index recently dipping below the 6,190-point mark.