Indonesia's stock market has rebounded into bull market territory after hitting a five-year low in early June. The Jakarta Stock Exchange Composite Index has recovered more than 10% from that low, although it is still down about 29% since the start of 2026. Key support came from attractive stock valuations, the Indonesian government's credit rating being maintained at BBB with a stable outlook by S&P Global Ratings, and the return of foreign investors. In addition, MSCI decided not to downgrade Indonesia's stock market from emerging market to frontier market status, which helped end panic selling. Meanwhile, regulatory measures requiring listed companies to have a higher free float and tightening disclosure requirements also helped restore confidence.