Jakarta. Optimism in Indonesia’s capital markets is strengthening in early 2026 on the back of rising corporate fundraising activity and bullish projections for the benchmark Jakarta Composite Index (JCI), which could climb toward 10,000 by year’s end.

The Financial Services Authority (OJK) said prospects for corporate fundraising remain bright this year, supported by a solid issuance pipeline and sustained investor appetite. Inarno Djajadi, OJK’s chief executive overseeing capital markets, said regulators have recorded 29 planned offerings with an indicative value of Rp 22.28 trillion ($1.32 billion).

The pipeline includes 10 initial public offerings expected to raise Rp 1.66 trillion, three rights issues valued at Rp 6.66 trillion, four bond and sukuk (Islamic bond) issuances worth Rp 10.63 trillion, and 12 staged bond and sukuk offerings totaling Rp 11.17 trillion, Inarno said during a recent board briefing.

The upbeat outlook builds on a strong performance in 2025, when total corporate fundraising reached Rp 274.80 trillion, comfortably surpassing the Rp 220 trillion target. Twenty new companies listed shares during the year, raising Rp 16.21 trillion.

Market activity also surged. The JCI logged 24 record highs in 2025 and ended the year at 8,646.94, up 22.13% year on year. Liquidity improved sharply, with average daily trading value hitting a monthly record of Rp 27.19 trillion in December and staying above Rp 20 trillion since August. Market capitalization peaked at Rp 16,005 trillion on Dec. 8.

Entering 2026, volatility has increased after the index notched a new intraday high of 9,000.96 on Monday. The JCI opened at 8,991.76 and briefly strengthened before heavy profit-taking pushed it down to close at 8,850.51. Trading value reached Rp 36.76 trillion, one of the highest levels in recent weeks, with decliners outnumbering gainers.

Market participants largely view the pullback as a healthy correction after the index crossed a key psychological threshold. Praska Putrantyo, chief executive of brokerage Edvisor Profina Visindo, said short-term trading strategies are more relevant amid potential technical corrections. He highlighted opportunities in energy, coal, metals and minerals, and property stocks, naming ELSA, AADI, AMRT and BNGA as attractive accumulation candidates.

Praska added that the so-called January effect appears muted this year, as the index enters a distribution phase following its rally to 9,000. External pressures are also weighing on sentiment, including geopolitical tensions involving Venezuela and Iran, and US labor data showing unemployment easing to 4.4%, reinforcing expectations that the Federal Reserve will keep rates at around 3.75%.

Domestically, a weaker rupiah — which has slipped past Rp 16,800 per dollar — is another factor tempering gains, he said.

Still, medium-term prospects remain constructive. Finance Minister Purbaya Yudhi Sadewa said the JCI has a strong chance of reaching 10,000 by the end of 2026, supported by better policy coordination and a strengthening domestic economy. “Ten thousand by year-end? Possibly even higher,” he told reporters.

Purbaya said the index could have reached 9,000 sooner in 2025 had policies been implemented more optimally, adding that improved synchronization and macroeconomic stability this year should support more aggressive gains.

Inarno welcomed the government’s optimism but cautioned that solid economic fundamentals remain essential. He underscored the growing role of domestic investors in sustaining momentum and stability, while urging vigilance toward interest rates, currency movements and geopolitical risks.

With corporate fundraising demand rising, liquidity deepening and investor confidence holding firm, Indonesia’s capital market enters 2026 on a stronger footing. While short-term volatility is likely to persist, expectations that the JCI could test the 10,000 mark by year’s end are gaining traction.

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