Retail investors are no longer playing second fiddle in Indonesia’s stock market. Over the past ten years, they’ve gradually pushed aside foreign investors and now hold the majority of market ownership. The shift is no longer a forecast, it’s a fact. Data from Kustodian Sentral Efek Indonesia (KSEI) shows that as of June 2025, retail investors dominate with over 50% market control. Meanwhile, foreign ownership has dropped to just 40.37%, the lowest in the past decade.
This ownership shift is unfolding alongside a surge in the number of investors entering the market. The Indonesia Stock Exchange (IDX) reported 16.99 million capital market investors as of June 2025. That’s a nearly sixfold leap from 2019, when the number was still around 2.5 million, before the COVID-19 pandemic.
IDX Director of Trading and Membership Regulation, Irvan Susandy, spoke on the growing trend during a media briefing on Wednesday (23 July 2025). “Since the 2020 pandemic, ownership in the stock market has shifted from being majority foreign-held to predominantly domestic,” he said, as quoted by CNBC Indonesia.
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Irvan emphasized that the rise of domestic investors has strengthened the market’s resilience. “With this shift, the domestic investor base has become more solid and can serve as a stronger cushion against external shocks,” he explained.
He credited the trend to increased public understanding of finance and investing. Ongoing education has played a big part in building a more informed, confident investor base.
As of June 2025, local retail investors hold 18.2% of shares on the stock exchange. That’s a significant increase from just 6.5% in 2015. Institutional domestic investors also hold a notable share at 38.2%, up from 30.1% ten years ago. In contrast, foreign investors now hold only 43.6% of total market value.
“These numbers show that domestic investors, both retail and institutional, still dominate the capital inflow into Indonesia’s stock market,” Irvan said.
Foreign investors still play a key role, especially in large-cap stocks. But their structural dominance has weakened as domestic players become more active and confident in the market. Irvan underlined the importance of maintaining a healthy balance. “We hope to achieve a balanced participation between domestic and foreign investors to foster healthy growth in the capital market,” he stated.
Investor activity continues to grow. By the end of June 2025, Indonesia had 16.998 million capital market investors, with domestic retail investors making up 16.948 million of them. Each day, around 179,000 investors are actively involved in trading.
Retail investors now own about 18.2% of securities listed on the IDX. Before the pandemic, their share was just 10.6%. In terms of trading volume, they accounted for 44% of all transactions as of June 2025. That makes them the largest contributor to trading activity in the market.
Recognizing the pivotal role of retail investors, the IDX continues to ramp up financial literacy programs. These include online and offline education initiatives, in partnership with IDX regional offices, capital market ambassadors, investment galleries, and social media campaigns aimed at boosting awareness and understanding of capital market opportunities.
The growing dominance of domestic investors marks a turning point for Indonesia’s capital market. What began as a pandemic-era shift has evolved into a long-term structural change. If momentum continues, the market could grow even more stable, resilient, and inclusive—driven not by outside capital, but by the strength of its own people.
