Rancak Media – DENPASAR — The Financial Services Authority (OJK) has reported a remarkable performance by the Jakarta Composite Index (IHSG), which has hit an all-time high (ATH) on 13 separate occasions throughout 2025. This impressive upward trend has significantly boosted Indonesia’s capital market capitalization, according to Inarno Djajadi, Chief Executive of Capital Market, Derivative Finance, and Carbon Exchange Supervision at OJK.
The robust growth saw Indonesia’s capital market capitalization reach a staggering Rp15,316 trillion as of the market close on Friday, November 14, 2025, based on statistics from the Indonesia Stock Exchange (BEI). Inarno highlighted that this figure has already surpassed the government’s ambitious target for the capital market’s contribution to the national Gross Domestic Product (GDP), which was initially projected to be achieved only by 2029.
“The government, in the 2025–2029 National Medium-Term Development Plan (RPJMN), targeted a market capitalization to GDP ratio of 68%. We are truly grateful that we do not have to wait until 2029, as we have already reached 69.18%,” Inarno stated during a BEI capital market workshop in Bali on Saturday, November 15, 2025. This early achievement underscores the strength and dynamism of the Indonesia stock market.
Furthermore, OJK’s own capital market roadmap for 2022–2027 sets an even higher target of achieving 70% of national GDP for market capitalization. With the IHSG continuing its strong rally, Inarno expressed optimism that this ambitious target could be reached even sooner than anticipated. “We are just a little short now. Hopefully, we can reach 70% before the end of the year,” he added, emphasizing the positive outlook for investment and economic growth.
While Indonesia’s capital market boasts the largest absolute capitalization among ASEAN nations, including Malaysia, Singapore, Thailand, and Vietnam, there remains significant potential for further development. Eddy Manindo Harahap, Deputy Commissioner for Capital Market Investment Management and Securities Institutions at OJK, pointed out that the contribution of stock exchanges to the GDP in these neighboring countries still surpasses Indonesia’s current ratio.
For instance, Malaysia’s market capitalization to GDP ratio stands at 109.49%, Singapore at 102.85%, Thailand at 94.98%, and Vietnam at 72%. These figures, while showing a gap, also signify vast opportunities. “In terms of the PE ratio [price to earnings ratio], we are not yet good enough, but we hope to see continuous improvement in the future. We still have immense potential for development, and we must capitalize on that,” Eddy concluded, underscoring the ongoing efforts to enhance the depth and appeal of Indonesia’s capital market.
Summary
The Jakarta Composite Index (IHSG) recorded an all-time high 13 times in 2025, significantly boosting Indonesia’s capital market. By November 14, 2025, the market capitalization reached Rp15,316 trillion, translating to 69.18% of GDP. This figure surpasses the government’s 2029 target of 68% for market capitalization contribution to GDP, achieving it much earlier than expected. The Financial Services Authority (OJK) expresses optimism about reaching its own higher target of 70% even sooner.
Although Indonesia holds the largest absolute market capitalization among ASEAN nations, its market capitalization to GDP ratio still trails behind countries like Malaysia, Singapore, Thailand, and Vietnam. OJK identifies immense potential for further development and improvement within the Indonesian capital market. This indicates ongoing efforts to enhance the depth and appeal of the market.
