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JCI: Jakarta Composite Index vs Jakarta Conglomerate Index

In recent weeks, the excitement in the Indonesian capital market has returned. Amid global conditions that are not yet fully stable, local investors are presented with an attractive picture: the IHSG has strengthened for 11 consecutive days since early July. Is this a signal that market confidence has fully recovered?

It's not that simple.

Behind this rally, there is a deeper market dynamic that, if overlooked, could have negative consequences for investors.

The IHSG is indeed rising, but not all shares are soaring along with it. In fact, what is driving the IHSG is not the usual blue chip shares, but conglomerate stocks.

The Real Story Behind IHSG Rally

During the period 7–21 July 2025, the IHSG rose +8.3%. However, upon closer examination, this surge was largely driven by five conglomerate shares:
DCII: +91.9%
BREN: +38.6%
BRPT: +54.2%
DSSA: +17.1%
CDIA: +539.5%

These five shares contribute significantly to the IHSG because their total market capitalisation is equivalent to 17% of the IHSG's market cap. On the other hand, large shares such as BBCA and BMRI are actually among the top laggards, with a combined weighting of around 13% of the IHSG.

This phenomenon demonstrates: sector rotation and investment themes are taking place. Conglomerate shares that were once merely complementary are now becoming market drivers.

The Changing Face of the IHSG

Source: Syailendra Capital

Even from 2021 to 2025, the composition of the IHSG's top 10 largest shares has changed significantly:
- The share of conglomerate shares increased from 2.4% to 20.8%
- The share of large cap & state-owned shares fell from 30.4% to 26.3%

The IHSG may be the same, but its contents have changed considerably. This is what many analysts refer to as a shift from the Jakarta Composite Index to the Jakarta Conglomerate Index.

So, What is the Right Investment Strategy?

Syailendra Capital offers two approaches that can be tailored to your preferences and investment style:
Syailendra Alpha Equity Fund (SAFE)
Active strategy, focused on selected shares with high growth potential.
1Y Return: +10.18% (vs IHSG +0.31%)

Syailendra MSCI Indonesia Value Index Fund (SMSCI)
Passive strategy, based on the MSCI Value index which contains undervalued shares and dividend payers.
1Y Return: -8.47% (vs iShares EIDO -13.67%)

As the saying goes, "There is a share for every season, and every share has its season."

Market conditions will continue to change. What matters is how we remain flexible and aware that looking at the index alone is not enough. Investors need to understand what lies within it and adjust their strategy accordingly.

So, are you the type who likes to ride the trend like SAFE?
Or do you prefer a buy and hold undervalued assets strategy like SMSCI?

What matters most is finding the strategy that fits you best.
Let's invest smarter.