Indonesian stocks stage massive turnaround, hitting bull market status after clocking a five-year low just last month

An Indonesian worker walking next to a screen featuring market trading information at the Indonesia Stock Exchange (IDX) in Jakarta.Adek Berry | AFP | Getty ImagesAttractive valuations, quick intervention by local financial regulators and a gradual return of foreign investors have helped Indonesian stocks reach bull-market status after hitting a five-year low in early June. Indonesia's Jakarta Stock Exchange Composite Index is down about 29% year-to-date, but has reached the bull-market threshold of a 10%-plus gain since that trough last month, according to LSEG data. S&P Global ratings reaffirming Indonesia's BBB sovereign rating with a stable outlook a couple of weeks ago helped boost sentiment. "S&P's affirmation removed an important macro overhang," said Mohit Mirpuri, senior partner at SGMC Capital. "Over the past month, we've seen the market transition from pricing in deterioration to pricing in stabilization."Indonesian shares have been on a roller coaster for much of 2026 after index provider MSCI called into question governance on many of the country's stocks and said it would consider downgrading the market to frontier status from emerging. Many of the companies h...