DENPASAR — The Financial Services Authority (OJK) has reported that Indonesia’s benchmark Jakarta Composite Index (IHSG) achieved an all-time high (ATH) a remarkable 13 times throughout 2025. This stellar performance has significantly propelled the capitalization of Indonesia’s burgeoning capital market.
According to Inarno Djajadi, OJK’s Chief Executive for Capital Market, Derivative Finance, and Carbon Exchange Supervision, this robust condition has driven Indonesia’s market capitalization to unprecedented levels. Based on data from the Indonesia Stock Exchange (IDX) at market close on Friday, November 14, 2025, the capital market’s valuation reached an impressive Rp15,316 trillion. Inarno highlighted that this figure has already met the national target for capital market contribution to the Gross Domestic Product (GDP), a milestone the government initially aimed to achieve only by 2029.
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“The government targeted a capital market-to-GDP ratio of 68% in the 2025–2029 National Medium-Term Development Plan (RPJMN). We are grateful that we don’t have to wait until 2029, as we have already reached 69.18%,” Inarno stated during an IDX capital market workshop in Bali on Saturday, November 15, 2025.
Concurrently, within the OJK’s 2022–2027 capital market roadmap, the authority aims for market capitalization to reach 70% of the national GDP. With the IHSG continuing its rapid ascent, there is growing optimism that this ambitious target can be achieved even sooner than projected. “We are now just a little bit away. Hopefully, we can reach 70% before the end of the year,” he added confidently.
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Meanwhile, OJK Deputy Commissioner for Capital Market Investment Management and Securities Supervision, Eddy Manindo Harahap, noted that Indonesia’s current capital market capitalization stands as the largest among ASEAN nations, surpassing countries like Malaysia, Singapore, Thailand, and Vietnam.
However, a key distinction lies in the stock exchange’s contribution to the GDP of these peer nations, which still outpaces Indonesia. For instance, Malaysia’s ratio has reached 109.49%, Singapore 102.85%, Thailand 94.98%, and Vietnam 72%. This comparative data, according to Harahap, underscores that while Indonesia’s capital market has demonstrated significant achievements, there remains substantial room for further development and growth.
“Our PE ratio [price-to-earnings ratio] is admittedly not yet sufficiently strong, but we hope to see continuous improvement going forward. We still possess immense potential for development, and we must capitalize on that potential,” Harahap emphasized, highlighting the ongoing opportunities within the Indonesian capital market.
Summary
Indonesia’s Jakarta Composite Index (IHSG) achieved an all-time high 13 times in 2025, significantly boosting the capital market’s capitalization. By November 14, 2025, market valuation reached Rp15,316 trillion, translating to 69.18% of the national GDP. This achievement surpassed the government’s 2029 target of 68% ahead of schedule and is approaching the OJK’s ambitious 70% target.
While Indonesia now holds the largest capital market capitalization among ASEAN nations, its capital market-to-GDP ratio is still lower than some regional peers. This indicates substantial potential for further development and growth within the Indonesian capital market. Authorities acknowledge the need to strengthen the price-to-earnings ratio but remain optimistic about continuous improvement.