Although challenges persist, Indonesia's benchmark stock index (Jakarta Composite Index) is estimated to rise in 2016, surpassing the level of 5,000 points. Last year the index fell 12.13 percent to close at 4,593.01 points. In particular Indonesia's infrastructure, banking, consumption, cement, property and construction sectors are expected to post a good performance this year on the back of accelerated domestic economic growth supported by government spending and the recent economic stimulus packages.

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The last trading day of 2015 on the Indonesia Stock Exchange has passed and now it is time to look back on the performance of Indonesia's benchmark stock index (Jakarta Composite Index) and the rupiah during 2015. The year 2015 was a hectic year, characterized by volatile behavior due to uncertainty about the timing of the looming US interest rate hike (which was finally decided upon by the Federal Reserve in December 2015) and the economic slowdown of China.

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Stock indices in Southeast Asia plunged on Friday (18/12), led by benchmark indices in Thailand and Indonesia. These Asian markets followed the global correction that occurred after investors weighed in the possible impact of the Federal Reserve's interest rate hike. US and European stocks dropped on Thursday and Friday, while prices of oil and other commodities continued to slide. Indonesia's Jakarta Composite Index fell 1.92 percent to 4,468.65 points.

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After the rally on Thursday (responding positively to the Federal Reserve's announcement to raise its Fed Fund Rate), Indonesian assets are weakening on Friday (18/12) while most other Asian markets are down. Indonesia's benchmark Jakarta Composite Index was down 1.20 percent to 4,501.34 points by 09:45 am local Jakarta time, while the Indonesian rupiah had depreciated 0.22 percent to IDR 14,040 per US dollar (Bloomberg Dollar Index). As such, Indonesian stocks are following the example of US stocks that plunged overnight.

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Indonesian stocks and the rupiah responded highly positive to the decision of the US Federal Reserve to raise its key Fed Fund Rate by 25 basis points on Wednesday (16/12). Indonesia's benchmark stock index (Jakarta Composite Index) soared 1.62 percent to 4,555.96 points, while the rupiah appreciated 0.44 percent to IDR 14,009 per US dollar. Not only in Indonesia but also globally stocks thrived on the ending of prolonged uncertainty about the timing of the US interest rate hike.

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The US Federal Reserve finally decided to raise the Fed Fund Rate by 25 basis points at its December policy meeting (15-16 December) on a considerable improvement in US labor market conditions (the US unemployment rate having fallen to 5 percent) and US inflation projected to meet the Fed's 2 percent target over the medium term. After this announcement US stocks soared. Emerging markets were not hit by severe capital outflows after the rate hike. Asian stock indices strengthened sharply on Thursday morning (17/12).

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Stock markets in Asia are experiencing rough weather as investors pull funds out of emerging markets. By 11:25 am local Jakarta time, Indonesia's benchmark Jakarta Composite Index had plunged 1.11 percent to 4,344.69 points, while the rupiah had depreciated 0.54 percent to IDR 14,068 per US dollar (Bloomberg Dollar Index). Investors are seeking safe(r) haven assets as the Federal Reserve is expected to raise its key Fed Fund Rate (for the first time in almost a decade) at its next FOMC meeting (scheduled for 15-16 December).

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On the last trading day of the week, Indonesian stocks plunged 1.63 percent to 4,393.52 points, while the rupiah depreciated 0.22 percent to IDR 13,984 per US dollar (Bloomberg Dollar Index). Most Asian indices were weaker as investors are bracing for - most likely - the first Fed Fund Rate hike in nearly a decade. On 15-16 December the US Federal Reserve will hold a crucial policy meeting. Tighter monetary policy in the USA leads to capital outflows from Indonesia as the country is regarded particularly vulnerable to such a move.

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Asian stock indices - including Indonesia's benchmark Jakarta Composite Index which reopened after a market holiday - were mostly in red territory on Thursday (10/12) as investors are cautious ahead of the looming US interest rate hike, expected to be decided upon at the Federal Reserve's next policy meeting (15-16 December), as well as low oil prices and falling US stocks overnight. Moreover, the central bank of China allowed its yuan to depreciate further (to a near four-month low), hence resulting in the resurgence of some fears of a currency war in Asia.

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Indonesian radio broadcasting company Mahaka Radio Integra, part of the Mahaka Group, plans to acquire one radio station in Jakarta as well as two new radio stations in Medan and Makassar in 2016. Through these acquisitions the company aims to control a 30-40 percent market share in the nation's radio industry by 2017. To finance these corporate actions Mahaka Radio Integra will use part of proceeds from the initial public offering (IPO) on the Indonesia Stock Exchange (IDX) this month.

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On Thursday's trading day (21/11/13), the Jakarta Composite Index (Indonesia's benchmark stock index, or IHSG) fell 0.56 percent to 4,326.21 points as investors are concerned seeing the result of the latest Federal Open Market Committee (FOMC) meeting, which seems to indicate that the Federal Reserve's monthly USD $85 billion bond-buying program (quantitative easing) will be wound down within a couple of months. The IHSG was also negatively affected by the lower preliminary HSBC Manufacturing PMI of China.

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The Federal Reserve, central banking system of the United States, expects that the current economic recovery of the USA is set to continue. In the minutes of the latest Federal Open Market Committee (FOMC) meeting, held at end-October 2013, it is mentioned that within the next few months the Federal Reserve can start winding down its monthly USD $85 billion stimulus program (known as quantitative easing). The next FOMC meeting, which will shed more light on the future of the bond-buying program, is scheduled for December 2013.

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Amid falling Asian stock indices, Indonesia's benchmark stock index (IHSG) went down 1.08 percent to 4,350.79 points on Wednesday's trading day (20/11). As has become an usual pattern, after one or two days of gain, market participants immediately engage in profit taking the following day. Investors reacted to the OECD's downgrade of its outlook for global economic growth (triggered by slowing growth in emerging markets) and to Indonesia's central bank's higher interest rate (which impacts negatively on the country's economic growth).

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Various factors contributed to the 1.34 percent rise of Indonesia's benchmark stock index (also known as the Jakarta Composite Index or the IHSG) on Monday (18/11) to 4,393.59 points. Firstly, the index was supported by other major Asian stock indices which all benefited from rising indices on Wall Street and in Europe at the end of last week. Secondly, the IHSG felt the positive impact from speculation that the government of China will reform its economy in order to spur economic growth.

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Indonesia Investments presents a selection of corporate earnings reports (third quarter 2013) of Indonesian companies that are listed on the Indonesia Stock Exchange, categorized by sector: (1) agriculture & mining, (2) basic industry and chemicals, (3) miscellaneous industry, (4) consumer goods, (5) property and real estate, (6) infrastructure, utilities and transportation, (7) finance, and (8) trade, services and investment. The tables display both net profit (loss) and revenues over the first nine months of 2013, together with year-on-year (yoy) growth.

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Indonesia's benchmark stock index (IHSG) was not able to continue its rebound. On Friday (15/11), the IHSG fell 0.73 percent to 4,335.45 points amid widespread profit taking. Foreign investors recorded net selling of IDR 193 billion (USD $16.9 million) on today's trading day. Moreover, investors are concerned about the impact of the higher interest rate of the central bank (7.50 percent), particularly on the property and banking sectors in the fourth quarter of 2013.

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Amid negative market sentiments, brought on by domestic factors, Indonesia's benchmark stock index (IHSG) and rupiah exchange rate plunged on Wednesday (13/11). For many investors, in particular foreign investors, Indonesia's central bank's decision to raise the benchmark interest rate (BI rate) by 25 bps to 7.50 percent yesterday (12/11) was reason to engage in stock selling. It was worsened by the continued decline of the rupiah as well as weak Asian stock indices and weak stock openings in Europe.

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Five more new public listings are expected on the Indonesia Stock Exchange (IDX) in the remainder of 2013 despite the current less rosy macroeconomic environment in Indonesia. The companies that are expected to conduct their initial public offering (IPO) are Indomobil Multi Jasa, Dwi Aneka Jaya Kemasindo, Blue Bird, Soechi Lines, and Sawit Sumbermas Sarana. So far this year, 26 Indonesian companies went public on the IDX. At the start of the year, the IDX targeted for at least 30 new listings in 2013.

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The Jakarta Composite index (Indonesia's benchmark stock index or IHSG) fell on Monday (11/11) amid mixed Asian markets. Not even positive finishes on Wall Street last Friday (08/11) were able to support the IHSG. Most investors seem to be waiting for results of Bank Indonesia's Board of Governor's Meeting which is scheduled for Tuesday (12/11). This meeting will provide answers about the central bank's view of the domestic economy and whether it thinks another adjustement of the BI rate is necessary.

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Contrary to most Asian indices, Indonesia's Jakarta Composite Index (IHSG) managed to post a gain on Thursday (07/11). The IHSG seemed to follow the upward movement of Wall Street on the previous day (06/11) after a number of Federal Reserve officials stated to support the continuation of the Fed's monthly USD $85 billion bond-buying program (quantitative easing). Despite continued foreign net selling, the IHSG index rose 0.82 percent to 4,486.11 points as domestic purchases offset foreign selling.

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