Indonesia's market correction draws foreign investors, says Danantara chief

Indonesia's stock market has fallen around 40% in recent months, creating cheap valuations that attracted foreign investors, Investment Agency head Danantara Rosan Roeslani said. He noted that the steep decline made Indonesian companies’ price‑to‑book ratios far below intrinsic value, prompting global fund managers to buy domestic banking and industrial shares.

Roeslani added that the inflow of foreign capital helped stabilise the rupiah and boosted the composite index (IHSG) in the days following the purchases. The government expects continued foreign buying to support the currency and maintain market stability through the rest of the year.