In October 2024, domestic developments provided more tailwinds than global events. Key global influences on domestic stocks included the upcoming U.S. election, China’s economic stimulus, and rising political tensions in the Middle East. The next U.S. president is expected to implement high tariffs on imports and increase bond issuance, potentially raising yields. Higher bond yields in the U.S. have driven investors back to the American market. Conversely, China’s economic stimulus has renewed optimism for investors, encouraging those previously underweight on China to shift back through short-covering by reallocating gains from well-performing markets. Meanwhile, escalating tensions in the Middle East have prolonged global economic challenges. Rising commodity prices, particularly oil, alongside a strengthened U.S. dollar, have prompted global investors to shift funds away from oil-sensitive markets like Indonesia.

On the domestic front, Indonesia welcomed a new government in October 2024, with a cabinet of 48 ministers and 56 vice ministers, of whom 41% are party-affiliated and 59% non-party-affiliated. This combination has sparked optimism for stronger economic growth. Investor confidence has been bolstered by continuity in key ministries—such as finance, investment, state-owned enterprises, and health—each led by the same figures from the previous administration, signalling an ongoing commitment to economic development. With a smooth government transition, focus has shifted toward implementing anticipated plans.