The Composite Stock Price Index (JCI) set a new record high in the history of the operation of the stock exchange in the country. The trigger was domestic and foreign factors that both provided a positive impetus on the trading floor.

Throughout the trading session on Thursday (14/8/2025), JCI was in the positive zone. The index moved between a level of 7,905.54 to a high of 7,973.98, which is also a new all time high (ATH). Trading closed at 7,931.25 - an increase of 0.49% from the opening.

Previously, JCI touched a record high on September 19, 2024 when JCI touched a record high of 7,910. This increase in JCI continues the upward trend of more than 4% since the beginning of the second week of August 2025.

Trading activity on the Indonesia Stock Exchange on August 14, 2025 was quite high. The total trading frequency reached 2,143,276 times, with a trading volume of 42.1 billion shares. The value of daily stock transactions reached Rp 18.7 trillion.

This increase was driven by capital injections from both domestic and foreign sources. Domestically, big investors injected capital into a number of conglomerate group issuers.

Professor of the Faculty of Business Economics at the University of Indonesia (FEB UI) Budi Frensidy explained that the surge in the JCI was dominated by the movement of only five conglomerate stocks that contributed to a significant increase in the index. Among others, PT DCI Indonesia Tbk (DCII) shares, PT Dian Swastatika Sentosa Tbk (DSSA) shares, PT Chandra Asri Pacific Tbk (TPIA) shares, and also PT Chandra Daya Investasi Tbk (CDIA) shares.

He also believes that without the movement of these large stocks, the JCI will not move much from the level at the beginning of the year. It may only be around 7,200. According to him, this phenomenon shows that the increase in the JCI does not represent the fundamentals of all economic sectors on the stock exchange.

"So, this increase does not represent the overall fundamental economy or all sectors on the stock exchange. Only conglomerate stocks are also not spread across sectors. Maybe only two-three sectors experienced a very large increase," he explained to SUAR (14/8/2025).

He added that some of the sectors that supported this increase included technology, petrochemicals, and banking. These stocks have the largest weight in the index, so their price increases can significantly boost the JCI.

Although the JCI set a record, Budi Frensidy doubts that this will attract significant foreign investment. In fact, according to him, even if investors are attracted, the big profits are likely to be enjoyed only by owners of big cap stocks. This increase also cannot be confirmed as a positive signal for overall economic progress.

For entrepreneurs who previously conducted share buybacks when prices corrected, the JCI reaching a record high had a positive impact. He explained that share buybacks that have been carried out provide benefits that in accounting are included as additional capital.

The increase in the JCI and positive market sentiment has increased the valuation or market capitalization of companies. He estimates that this moment will be used by issuers who have received additional capital to release their buyback shares and realize profits. 

Therefore, Budi Frensidy hopes that the rise of the capital market is not only driven by a handful of conglomerate stocks. He encourages investors, both institutional and retail, to start looking at other stocks that have good fundamentals.

According to him, many stocks with solid fundamentals have not been affected by this increase. Moreover, most conglomerate stocks are no longer cheap in terms of valuation.

"If the stocks that are now rising last, I think it's good, because it will make our index at least not fall below 7,900. But it would be even better if other stocks with good fundamentals also rise," he said.

According to him, if the trend in share prices of these big caps is followed by other stocks, JCI has the potential to break the 8,000 level or more.

If this trend is followed by other big cap stocks, the JCI has the potential to break 8,000 or more.

Global sentiment

Meanwhile, Herditya Wicaksana, capital market analyst at MNC Sekuritas, believes that the influx of capital flows from global sources is the driver of the JCI increase. He sees that there are several other factors that have contributed to the strengthening of the JCI. These factors are global and domestic.

"We estimate several factors driving the JCI movement, including the increasing expectations of the Fed's interest rate cut in September 2025," he told Suar, (14/8/2025).

He added that the probability of this interest rate cut reached 95%. In addition, the extension of the trade war between the US and China until November 2025 also helped boost the market.

On the domestic side, he noted that market players are signaling policy support and coordination from the government and regulators to maintain the strengthening momentum of the JCI. With this record high, the psychological level of 8,000 is now a short-term target.

According to Herditya, thecapital inflow into the Indonesian stock market indicates that the investment climate in the country is quite attractive for domestic and foreign investors. He noted that the recent release of Gross Domestic Product (GDP) data at 5.1% also helped boost market and investor optimism.

Furthermore, Herditya estimates that the achievement of ATH will encourage issuers to review the share buyback policy. He hopes that the strengthening of the JCI can continue and have a positive impact on the performance of issuers in the future.

OJK's Chief Executive of the Capital Market Supervisor of Derivative Finance and Carbon Exchange (PMDK) Inarno Djajadi welcomed the potential strengthening of the JCI. This spirit reflects confidence in the stability of the national economy and the prospects for the performance of Indonesian issuers which continue to show improvement.

However, it is important to note that the movement of the JCI is highly influenced by various factors, both domestic and global, as well as the performance of issuers.

Market euphoria still needs to be accompanied by vigilance and good risk management.

"We remind that market euphoria still needs to be accompanied by vigilance and good risk management," he said.

From the regulator's side, it continues to ensure that the market runs regularly, fairly and efficiently. OJK also encourages the creation of a healthy capital market ecosystem and integrity, so that the growth potential of the JCI and other instruments can be achieved sustainably, not just because of short-term momentum.