Akmalal Hamdhi, Jakarta – JPMorgan Indonesia said the country's financial markets remain attractive to foreign investors despite recent protests, underscoring confidence in the government's ability to maintain stability and respond to public demands.
Gioshia Ralie, CEO and Senior Country Officer of JPMorgan Indonesia, said demonstrations in Jakarta and other cities have not significantly dented investor sentiment. "Investors are more mature now and understand what is happening both in Indonesia and in the region. Protests do occur, but so far they remain orderly," Gioshia told reporters at a media briefing in Jakarta on Thursday.
He said that the government's quick response had helped ease tensions and reassure investors from the United States, the United Kingdom, Hong Kong, and Canada, who have been closely watching the situation. While violent incidents could trigger negative sentiment, he suggested that investor confidence tends to improve when public demands are acknowledged and addressed promptly.
Gioshia argued that Indonesia remains resilient, with many foreign investors choosing to stay. He stressed that the government's follow-through will be critical, pointing to public pressure over perks for lawmakers and cases involving members of the police's Mobile Brigade (Brimob). Addressing these issues decisively could further strengthen market confidence, he added.
Looking ahead, JPMorgan praised Indonesia's draft 2026 state budget for striking a balance between fiscal discipline, strategic government programs, long-term investment, and short-term consumption support. The budget projects GDP growth of 5.4 percent in 2026, compared with 4.7-5 percent this year. Fiscal revenue is expected to rise 9.8 percent annually, far outpacing the 0.5 percent growth forecast for 2025, while the budget deficit is projected to narrow to 2.48 percent of GDP from 2.78 percent this year.
Gioshia said investor optimism is also supported by President Prabowo Subianto's economic agenda, which includes tackling corruption, pursuing bureaucratic reforms, cutting inefficiencies at state institutions and state-owned enterprises, and managing natural resources more sustainably.
Bank Indonesia reported that foreign investors withdrew Rp 16.48 trillion ($1 billion) from the capital market in the first week of September, selling shares, government bonds, and Bank Indonesia Rupiah Securities (SRBI). The outflows coincided with nationwide protests that began on Aug. 25, and were sharply higher than the Rp 250 billion withdrawn the previous week
Source: https://jakartaglobe.id/business/jpmorgan-says-indonesian-market-remains-attractive-despite-unres