The index of the Indonesian Stock Exchange (BEI) rose 102.08 points or 2.35 percent to 4,445.78 points with the index of 45 most liquid stocks up 3.49 percent to 759.31 points.
Lanjar Nafi, an analyst from Reliance Securities said the majority of markets in Asia recorded gain on rupiah appreciation against the US dollar.
"The appreciation of the national currency brought about positive sentiment increasing investors confidence in Asian regional market. Rupiah recorded the strongest growth in Asia. That would certainly contribute to greater enthusiasm among foreign investors and strengthening capital inflow to the country," Lanjar Nafi said.
In trade on Tuesday, foreign net buy reached Rp844.63 billion.
Asjaya Indosurya Securities analyst Wiliam Surya Wijaya said foreign investment began a reversal in capital flows after past week capital out flow.
This indicates that Indonesian stock market is still good amid various negative sentiments in the market, Wiliam said.
"The countrys economic slowdown is expected to be over with expectation of strong growth as a result of the series of economic policy packages launched by the government," he said.
There were 345,480 transactions with 7.35 billion shares worth Rp6.6 trillion changing hands in Tuesdays trading.
Regional markets such as Hang Seng recorded a decline , with Nikkei and Straits Times posting gain in index. (*)
Editor: Heru Purwanto
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