Jakarta Composite Index Declines, Foreign Investors Accumulate Bank Shares
Jakarta, Indonesia – May 21, 2025 – The Jakarta Composite Index (IHSG) experienced a downturn this week, falling 2.44% from the previous week’s close. Despite the broader market weakness, foreign investors demonstrated a notable interest in Indonesian banking stocks, selectively increasing their holdings.
The decline in the IHSG reflects ongoing market adjustments amid global economic uncertainties. The daily average trading volume also decreased, dropping 10.33% compared to the prior week, reaching 37.95 billion shares. This shift in investor behaviour underscores a cautious approach as market participants assess potential risks and opportunities. The selective buying of bank shares by foreign entities suggests confidence in the long-term stability and growth potential of the Indonesian financial sector, even during periods of overall market volatility. This activity could signal a strategic positioning for future gains as the Indonesian economy continues to develop.
