indonesia’s LQ45 Index Suffers Major Setback in 2024
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Teh Indonesian Stock Exchange (IDX) closed out 2024 with a significant downturn in its LQ45 index, a key indicator of the country’s top performing stocks. A recent report reveals a year-end performance that paints a concerning picture for many investors.
Data compiled from the IDX shows a stark reality: a majority of the 45 most liquid and highly capitalized stocks experienced considerable losses throughout the year. Specifically, 31 of these stocks saw their prices decline since the beginning of 2024, leaving only 14 in positive territory.
This widespread decline resulted in a 16.5% year-to-date (YTD) drop for the LQ45 index, settling at 817.02.the broader Jakarta Composite Index (IHSG) also suffered, falling 4.6% YTD to 6,983.8, reflecting a broader market trend.
Significant Losses among Top Indonesian Stocks
Several prominent Indonesian companies experienced particularly steep declines. among the hardest hit where Unilever Indonesia (UNVR), down 50.7%; Semen Indonesia (SMGR), down 49.65%; and Bukalapak (OPEN), experiencing a dramatic 42.31% drop. Other notable losses include Merdeka Copper Gold (MDKA), Barito Pacific (BRPT), Sarana Menara Nusantara (TOWR), and Telkom Indonesia (TLKM), all suffering declines exceeding 36%.
- Unilever Indonesia (UNVR): -50.7%
- semen Indonesia (SMGR): -49.65%
- Bukalapak (OPEN): -42.31%
- Merdeka Copper Gold (MDKA): -40.71%
- Barito Pacific (BRPT): -40.7%
- Sarana Menara Nusantara (TOWR): -39.6%
- Telkom Indonesia (TLKM): -36.09%
- Bank Rakyat Indonesia (BBRI): -28.46%
- Mitra Adiperkasa (MAPI): -27.7%
- AKR Corporindo (AKRA): -24%
- Bank Jago (ARTO): -23.55%
- Pertamina Geothermal Energy (PGEO): -22.92%
- Indocement Tunggal Prakarsa (INTP): -21.49%
- Kalbe Farma (KLBF): -21.3%
- Indah Kiat Pulp & Paper (INKP): -20.96%
- Bank Negara Indonesia (BBNI): -20.74%
While the majority of LQ45 stocks experienced losses, a smaller group showed positive growth. This highlights the volatility of the Indonesian market and the need for careful investment strategies.
The performance of the Indonesian market in 2024 serves as a reminder of the inherent risks in global investments. Understanding these market fluctuations is crucial for investors worldwide.
Editor: Jahari Mahardhika
Indonesia, a key player in the Southeast Asian economy, is currently navigating a complex economic landscape.Recent indicators paint a mixed picture, with challenges and opportunities coexisting.Experts are closely monitoring several key factors to gauge the nation’s future trajectory.
One significant area of focus is the nation’s investment climate. While foreign direct investment remains crucial, fluctuating global markets and geopolitical uncertainties introduce volatility. “The current situation requires a strategic approach to attract and retain investment,” notes a leading economist, whose name and affiliation have been omitted for privacy reasons. This sentiment underscores the need for proactive policy adjustments to maintain economic stability.
The impact of global inflation on Indonesia’s domestic market is another critical concern. Rising prices of essential goods are impacting consumers, and the government is actively exploring measures to mitigate the effects. “Maintaining price stability is paramount,” emphasizes another unnamed expert, highlighting the government’s commitment to protecting its citizens’ purchasing power. This echoes similar concerns in the U.S. regarding inflation’s impact on household budgets.
Despite these challenges, Indonesia’s long-term growth potential remains significant.Its large and growing population, coupled with ongoing infrastructure development, presents opportunities for both domestic and foreign investors.The government’s commitment to diversifying the economy beyond its reliance on commodities is also a positive sign for sustained growth.
Staying Informed: Resources for Investors
For those interested in staying abreast of Indonesia’s economic developments, several resources are available. You can follow updates on the official Telegram channel (link) or consult Google News (link) for the latest news and analysis. Additionally, live streaming economic analysis is available on IDTV (link).
Understanding Indonesia’s economic trajectory is crucial for both international investors and those interested in global market trends. The country’s resilience and potential for growth make it a compelling subject of ongoing observation and analysis.
IndonesiaS LQ45 Index Suffers Major Setback in 2024
Indonesia’s stock market took a significant hit in 2024, as evidenced by the performance of the LQ45 index. This key indicator, which tracks the performance of the 45 most liquid and highly capitalized stocks on the Indonesian Stock Exchange (IDX), ended the year with a notable downturn. The decline signals challenges within the Indonesian economy and raises concerns for investors.
Senior Editor: Dr. Atiqah, thank you for joining us today. The 2024 performance of the LQ45 index paints a difficult picture. can you provide some insight into the factors contributing to this decline?
Dr. Atiqah Rahman, Economist and Southeast Asia Market Specialist:
Certainly. We observed a widespread decline across the LQ45 index in 2024.
While the global economic climate played a role, several domestic factors also contributed. Inflationary pressures persisted throughout the year, impacting consumer spending and corporate profits. Political uncertainty surrounding the upcoming election cycle also added to investor hesitancy.
Senior Editor:
Some of Indonesia’s biggest companies, like Unilever Indonesia and Semen Indonesia, saw their stock prices plummet. This seems particularly alarming.
Dr. Atiqah Rahman:
indeed, several prominent companies experienced steep declines.These losses can be attributed to a confluence of factors.As an example, Unilever Indonesia faced rising input costs due to global supply chain disruptions, while semen Indonesia was impacted by a slowdown in the construction sector.
A Broader Look at Market Trends
Senior Editor:
The LQ45 isn’t an isolated case.We’ve also seen a decline in the broader Jakarta Composite Index ( IHSG). Does this suggest a systemic issue within the Indonesian stock market?
Dr. Atiqah Rahman:
The IHSG’s decline does reflect a broader market trend. Investor confidence was shaken by a combination of global and domestic factors.
However, it’s important to remember that Indonesia’s economy remains fundamentally strong. It’s crucial for investors to adopt a long-term perspective and consider the various growth opportunities Indonesia still presents.
Senior Editor:
What advice would you give to investors who are currently holding Indonesian stocks or considering investing in the market?
Dr.Atiqah Rahman:
Now is a time for cautious optimism.
Investors should carefully analyze individual companies, considering their fundamentals, industry outlook, and resilience to economic headwinds.
Diversification remains key to mitigating risk.
it’s crucial to monitor economic indicators
and goverment policies closely. While Indonesia faces challenges, its long-term growth potential shouldn’t be discounted.
Senior Editor:
Dr. Rahman, thank you for your valuable insights and analysis. I’m sure our readers appreciate your expertise.
Dr. Atiqah Rahman:
My pleasure. It’s important for investors to stay informed and make sound decisions based on a thorough understanding of the market.
