The Jakarta Composite Index (JCI) of the Indonesia Stock Exchange closed down 5.855 points (0.11 percent) at 5,296.711 on December 30, 2016. However, throughout 2016, the Jakarta Stock Exchange recorded a 15.32 percent increase from its end-of-2015 position. This was only surpassed by the Thai stock exchange, which achieved a 19.79 percent increase. Meanwhile, several other Asian stock exchanges recorded declines.
Controlled inflation throughout 2016, interest rate cuts, and the stability of the Rupiah exchange rate spurred increases in stock prices on the domestic exchange. The JCI rise was also driven by improving commodities, particularly crude oil prices. Although it experienced pressure when Donald Trump was elected President of the United States, the domestic exchange managed to close in positive territory by the end of 2016. Indonesia's still-strong macroeconomic fundamentals and investor optimism regarding 2017 economic growth encouraged investors to continue investing in the Jakarta Stock Exchange.
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