Rancak Media JAKARTA – The Composite Stock Price Index (IHSG) has successfully achieved new all-time high (ATH) closing records for two consecutive days. This impressive performance in the stock market was predominantly driven by domestic investors, a trend that aligns perfectly with Indonesia’s robust economic growth observed in the third quarter of 2025.
The first new ATH record was set on Thursday, November 6, when the IHSG closed at 8,337, marking a gain of 0.22%. On this trading day, domestic investors accounted for a significant 71% of market activity, while foreign investors made up the remaining 29%. Reflecting this dynamic, foreign investors recorded a net sell of Rp114.96 billion.
Building on this momentum, the IHSG achieved its second consecutive ATH on Friday, November 7, soaring by 0.69% or 57.53 points to close at 8,394.59. Trading on this day saw even greater domestic participation, with local investors contributing 72% of transactions, leaving 28% to foreign counterparts. Interestingly, while the market observed a foreign net buy of Rp920.24 billion for the day, the year-to-date foreign capital flow still showed a substantial net sell of Rp38.33 trillion.
M. Nafan Aji Gusta, Senior Market Analyst at Mirae Asset Sekuritas, highlighted that the pivotal role of domestic investors in these new composite index records is a direct reflection of Indonesia’s consistently strong economic conditions.
“The phenomenon where domestic investors become the backbone of the stock market is what enabled our IHSG to reach 8,390. This is primarily due to our excellent GDP performance, which has surpassed expectations,” Nafan conveyed to Bisnis, as quoted on Saturday, November 7, 2025.
Supporting this assessment, the Central Statistics Agency (BPS) released data indicating that Indonesia’s economic growth for the third quarter of 2025 stood at 5.04% year-on-year (YoY). This figure demonstrates an improvement compared to the GDP growth of 4.95% YoY recorded in the third quarter of 2024.
Nafan further explained that beyond macroeconomic factors, the strengthening of the IHSG also signals investor appreciation for the robust financial reports of issuers in the third quarter of 2025, alongside various corporate actions undertaken throughout the remainder of 2025.
“While we still contend with global uncertainties, such as the ongoing US government shutdown, we are also anticipating the dynamics of the Federal Reserve’s monetary easing policy, which may be postponed from December 2025 to January 2026. This is in addition to the risks of geopolitical escalation and tariff wars,” he added, emphasizing the complex global landscape.
In line with the increasing dominance of domestic investors in the stock market, the Indonesia Stock Exchange (IDX) reported that by the end of October 2025, the total number of Indonesian capital market investors reached an impressive 19,154,487 Single Investor Identifications (SIDs).
Of this total, new capital market investors in 2025 accounted for 4,282,848 SIDs. This represents a substantial increase of 58.4% compared to the 2,703,578 new investors added in 2024.
Specifically within the stock market, the number of investors has grown to 8,083,076 SIDs, with 1,701,632 new stock investors joining throughout 2025. This marks a 51.2% rise from the 1,125,873 new stock investors recorded in 2024, underscoring a significant surge in local participation.
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Summary
The Jakarta Composite Index (IHSG) achieved new all-time high closing records for two consecutive days on November 6 and 7, 2025. This impressive performance was predominantly driven by domestic investors, who contributed 71% and 72% of market activity on these respective days. Despite foreign investors recording a net sell on the first day and a substantial year-to-date net sell, the IHSG closed at 8,337 and 8,394.59.
Analysts attributed this domestic investor-led rally to Indonesia’s strong economic conditions, highlighted by a 5.04% year-on-year GDP growth in Q3 2025, an improvement from the previous year. The market also showed appreciation for robust Q3 financial reports. This surge in participation is evident in the growing number of Indonesian capital market investors, which reached over 19.15 million Single Investor Identifications (SIDs) by October 2025, with new stock investors significantly increasing.
