How to invest in Indonesian stock CFDs: Jakarta Composite Index guide
The Indonesian stock market remains a standout performer in Asia, with the Jakarta Composite Index (JCI) reaching new highs above 8,300 in November 2025. Past performance is not a reliable indicator of future results.
Supported by strong IPO activity from technology and state-owned enterprises, the Indonesian stock market has outperformed several regional peers, including Japan’s Nikkei 225, despite global headwinds and cautious monetary policy from major central banks.
Past performance is not a reliable indicator of future results.
Indonesia stock market: 2025 overview
Before exploring how to invest in Indonesia, it’s useful to understand the structure of the country’s exchange and its main benchmark index.
Indonesia Stock Exchange (IDX)
The IDX traces its roots back to 1912, when it was established under Dutch colonial rule. After several inactive periods, it was fully reactivated in 1977. Formerly known as the Jakarta Stock Exchange (JSX), it merged with the Surabaya Stock Index in 2007 to become the Indonesia Stock Exchange (IDX).
Jakarta Composite Index (JCI)
The JCI – also known as the IDX Composite – is a market-capitalisation-weighted index that tracks all listed shares. As of November 2025, the index closed at 8,318.53, up 0.93% on the day and 12.1% year on year, marking continued strength amid global market softness.
Finance, technology and infrastructure remain the largest sectors, while energy and consumer discretionary continue to attract interest. The index’s top constituents include Bank Central Asia (BCA), Bank Rakyat Indonesia (BRI), Telekomunikasi Indonesia (Telkom), and Bank Mandiri – all of which represent a significant share of total market capitalisation.
Past performance is not a reliable indicator of future results.
Indonesia stock market performance
The JCI has maintained a steady upward trend. In 2025, it reached a year high of 8,354.67, supported by GDP growth of 5.04% in Q3 2025 and sustained foreign inflows. The index has risen 1.7% in the past month, reflecting ongoing investor confidence. Past performance is not a reliable indicator of future results.
Booming number of IPOs
Indonesia remains one of Asia’s most active IPO markets. The surge that began in 2022 – driven by listings from technology firms such as GoTo and Blibli – has continued into 2025. The Q3 2025 IPO market in Indonesia reported tripling of proceeds to $906 million USD compared to the previous year, highlighting an emphasis on value-driven, high-profile listings from diverse sectors such as industrials, energy, and technology (Ernst & Young, 29 October 2025).
Past performance is not a reliable indicator of future results.
How to access the Indonesia stock market
Investors can access the Indonesian stock market through several routes:
1. Buying Indonesian shares directly
Domestic and international investors can purchase IDX-listed shares via authorised brokers or regulated online platforms. Foreign access has expanded through digital brokerage channels, providing exposure to leading firms such as Telkom Indonesia (TLKM), Bank Mandiri (BMRI) and GoTo Gojek Tokopedia (GOTO).
US-based investors may trade selected Indonesian equities through American Depositary Receipts (ADRs) listed on US exchanges or the OTC market. Examples include Telkom Indonesia (TLK) on the NYSE, and Bank Rakyat Indonesia (BKRKF), Medco Energi Internasional (MEYYY) and Bank Mandiri (PPERY) on the OTC market.
2. Investing via ETFs and mutual funds
Those preferring a diversified approach can invest in exchange-traded funds (ETFs) or mutual funds tracking the IDX Composite or LQ45 Index. These instruments provide exposure to a broad range of Indonesian equities without the need to select individual shares. ETFs trade like regular shares, while mutual funds are priced once daily after market close.
3. Trading Indonesian stocks with CFDs
Contracts for difference (CFDs) provide another way to gain exposure to Indonesian equities without owning the underlying assets. CFDs enable speculation on price movements – going long or short. However, CFDs are traded on margin – leverage amplifies both profits and losses. Traders should ensure they understand all associated risks before trading.
Indonesian stock market drivers and risks
Despite its resilience, the Indonesian market faces several near-term drivers and challenges.
Key Drivers
- Government spending and infrastructure investment continue to support growth and liquidity.
- Expanding technology and telecom participation – the tech sector gained 2.7% in recent sessions – is strengthening Indonesia’s digital economy.
- Foreign inflows remain positive, particularly in telecommunications and technology-related listings.
Key Risks
- Short-term volatility may persist as valuations rise following the JCI’s recent record highs.
- Currency fluctuations remain relevant as global monetary conditions evolve; the rupiah’s performance depends largely on US Federal Reserve policy and external capital flows.
- Inflation, currently below 3%, has provided stability, though a slowdown in domestic consumption could affect earnings growth.
- Political and policy developments, particularly following the 2024 election cycle, remain under observation, though prudent fiscal and monetary management has helped maintain confidence.
The bottom line
The Jakarta Composite Index continues to outperform most regional benchmarks, supported by robust IPO activity, a growing technology sector and ongoing government investment.
Investors can access this market through direct shares, ETFs or CFDs, but should approach leveraged products with caution and ensure a full understanding of all associated risks.
As always, conduct independent research before making trading decisions. Market conditions can change rapidly, and past performance is not a reliable indicator of future results.
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FAQ
Is investing in Indonesia a good idea?
Like any other financial markets, the Indonesia stock market has inherent volatility. You should do your own research before deciding to invest in the Indonesia stock market. Your investment decision should be based on your risk tolerance, investing strategy and objectives. Remember that past performance does not guarantee future returns. And never trade money that you can’t afford to lose.
Should I invest in the Indonesian stock market?
Whether or not you should invest in Indonesian stocks should depend on your risk tolerance, investing goals and strategy. Always conduct your own due diligence on how to invest in Indonesia before making a decision. Take into consideration the most recent market trends, media coverage, technical and fundamental analysis, and expert commentary. Remember that past results do not guarantee future success. Furthermore, never invest money that you cannot afford to lose.a
What are the main risks in investing in Indonesian stocks?
It’s worth noting that any investment contains risks. Investing in Indonesian stocks may involve macroeconomic, political, security and currency risks. Meanwhile, there are also company or industry-specific risks associated with individual stocks. Always do your own research before investing.