After Reporting to Prabowo, OJK Chief Confident US Dollar Will Reverse, Here Are the Conditions
Jakarta, CNBC Indonesia - The Chair of the Board of Commissioners (DK) of the Financial Services Authority (OJK), Friderica Widyasari Dewi, is optimistic that outflows from Indonesia’s capital market will reverse.
She stated that the current outflows are an effect of global geopolitical and geo-economic factors.
“Where, of course, with The Fed’s higher for longer policy, that’s why there’s outflow,” she said after a meeting with President Prabowo Subianto at the State Palace, Jakarta, on Tuesday (5/5/2026) evening.
“However, as long as we believe our fundamentals are strong, we hope this will reverse,” she emphasised.
On the other hand, the woman familiarly known as Kiki revealed that since the MSCI announcement in January, they have opened up data on shareholders holding 1% or more. This follows demands from global investors regarding transparency in Indonesia’s capital market.
“Then the granularity of the data from 9 classifications to 39 has been provided in a very detailed manner. The ultimate beneficial owner has also been disclosed. And one more thing related to liquidity, namely for free float above 15% with stages that we have communicated,” she said.
These improvements, she added, have shown visible impacts.
“If you look at the Composite Stock Price Index, its movements are now in line with major indices like LQ45, IDX30, and so on. So the stocks’ movements are now more driven by fundamentals,” she stated.
“And if we look ahead, there might be an announcement in May by MSCI and also in June regarding our market, which might involve rebalancing of the MSCI index in March. We expect there will be adjustments,” she said.
However, Kiki stressed that these adjustments are only temporary.
“Hopefully, going forward, things will improve fundamentally. And we hope it will get better because we continue to make improvements. For example, deepening the market,” she said.
“If you look at the numbers, the number of investors in our capital market has increased by around US$5 million in one year. So we are deepening the market by increasing our domestic investors so that if there’s turmoil outside, our market remains more stable,” she added.
Spotlighted by Prabowo
On the same occasion, Coordinating Minister for the Economy Airlangga Hartarto revealed that in the meeting, President Prabowo highlighted the capital outflows occurring.
“Some things that are of concern, of course, relate to the President’s view on capital outflows. And the capital outflows were delved into as being caused by one, the capital market, two, government bonds (SBN), and three, neutralised by Bank Indonesia securities (SRBI),” he explained.
“And it was agreed and reported to the President, an agreement of cooperation between BI and the Minister of Finance, so that going forward, this can be managed regarding capital outflows,” Airlangga added.
BI Chief: Inflows Starting to Happen
Meanwhile, Bank Indonesia Governor Perry Warjiyo added that inflows to Indonesia’s financial markets are already beginning to occur. Although, compared year-to-date, the situation is still an outflow.
“While stocks are experiencing outflows, we agreed that for now, SRBI needs inflows, so that the inflows from SRBI can cover the outflows from SBN and stocks. That’s our coordination with the Minister of Finance, so as to truly maintain the inflows from foreign portfolios, which year-to-date are still inflows, and that strengthens the rupiah exchange rate,” said Perry.