Investor Presentaiton
Spotlight on: IDX Market Capitalisation
Surviving challenging periods
2015: Market Turbulence
Inflation, high interest rates, declining exports,
slow down in the Chinese economy marked by
Yuan devaluation and the collapse of oil
prices triggered the downward slope in both the
national and global economies. In 2015, the
Indonesian rupiah plunged at a level
not seen since 1998.
The Indonesian economy slowly picked up
in H2 2015 and grew further. Growth was
supported by a sound level of economic
stability marked by low inflation, decline in the
current account deficit, stable exchange rate,
and well-maintained financial system stability
with low systemic risks.
2018: US and China Trade Tension
The escalating trade tension between the
United States (US) and China resulted in the
US Federal Reserve's decision to raise
its benchmark interest rate 4X during
the 2018, a total of 100 basis points.
This situation impacted emerging economies,
including Indonesia. The negative sentiment
from international investors was felt in
weakening of the Rupiah and the drop in the
Jakarta Composite Index. Amidst the trade
tension, Indonesia managed to grow by
minimising risks and optimising benefits.
PwC
In Rp trillion
11,000
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
Market Capitalisation 2015 - Q3 2023
The market capitalisation of IDX has grown more than 50% from 2015
Jan-15
Jun-15
Nov-15
Apr-16
Sep-16
Feb-17
Jul-17
Dec-17
2020 - Covid-19 Pandemic
May-18
Oct-18
Mar-19
Aug-19
Jan-20
Jun-20
Nov-20
Apr-21
Sep-21
Feb-22
Jul-22
Dec-22
May-23
Source: World Federation of Exchanges
Not long after the WHO declared COVID-19 as a pandemic in March 2020,
the global economy started to nosedive, leading to one of the worst crisis
since World War II. As outlined in the January 2021 edition of the World
Economic Outlook, the IMF estimated that global economic growth in
2020 contracted -3.5%. The global contraction included a -4.9% for
developed countries and a -2.4% for developing countries with emerging
markets, including Southeast Asia.
Keeping the growth momentum
2021-2022: Road to Recovery
Global and domestic economic conditions
were gradually recovering from the 2020 crisis.
The approval of the Omnibus law, tax reforms, the
introduction of IDX Acceleration Board and
harnessing the technology start up boom
that started in 2020 all helped spur investments.
The Indonesian Capital Market showed an uptick
in IPO activities.
H2 2021 produced blockbuster IPOs of
Bukalapak (IPO proceeds of Rp 21,900 billion)
and Mitratel (IPO proceeds of Rp 18,794 billion).
The momentum continued in April 2022 when
Indonesia's biggest technology company GoTo
Group staged its public debut raising IPO
proceeds of Rp 13,272 billion.
2023: Start of the Renewable Energy Era
A new trend has emerged - green transition
themed entities (that is, those involved in batteries
for electric vehicles and renewable energy).
Indonesia holds the world's largest nickel
reserve with up to 25% global share, making the
country the most attractive market destination for
investors. The country also aspires to be a global
EV supply chain hub.
There were sizable IPOs from the renewable
energy and metals/minerals sector. 2023 could be
the best year for the Indonesian Stock Exchange.
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