Indonesian Stocks Enter Bull Market With 10% Rebound as S&P Keeps BBB Rating
Updated
Updated · CNBC · Jul 28
Indonesian Stocks Enter Bull Market With 10% Rebound as S&P Keeps BBB Rating
1 articles · Updated · CNBC · Jul 28
Summary
Indonesia’s benchmark stock index has climbed more than 10% from its early-June five-year low, meeting the bull-market threshold even though it remains about 29% lower for 2026.
S&P Global’s reaffirmation of Indonesia’s BBB sovereign rating with a stable outlook helped lift sentiment, while investors also took comfort from stronger first-half tax collections and reduced fiscal-risk fears.
MSCI’s decision not to downgrade Indonesia from emerging- to frontier-market status also eased pressure after months of volatility tied to governance concerns, low free floats and concentrated ownership.
Regulators’ moves to raise minimum free float requirements and tighten ownership disclosures, combined with bargain valuations and a rotation out of pricey AI and tech stocks, have drawn foreign investors back.