Two Years of Jokowi-JK, Jakarta Stock Exchange Up 7 Percent

The Jakarta Composite Index (JCI) of the Indonesia Stock Exchange recorded a 7.2 percent increase during the two years of the Jokowi-JK administration. The Jakarta Stock Exchange closed at 5,403.69 on October 20, 2016, up 363.16 points (7.2 percent) from its position on October 20, 2014. However, the JCI has risen significantly this year by 810.68 points (17.65 percent), the highest in Asia.

Continued domestic economic growth and a stabilizing Rupiah exchange rate have strengthened stock prices on the Jakarta exchange. The return of foreign capital flows to the domestic financial market and repatriated funds from the tax amnesty program have increased stock market transactions. President Joko Widodo's infrastructure development program has given investors optimism to continue accumulating stocks.

In terms of valuation, stock prices on the Jakarta exchange are quite high, with the price-to-earnings ratio (PER) reaching 27.6 times. This is higher than other Asian exchanges such as the Singapore Exchange (11.96 times), the Kuala Lumpur Exchange (18.02 times), the Hong Kong Exchange (12.64 times), and the Tokyo Exchange (21.65 times).