BEI: Transparency and Solid Fundamentals Strengthen Indonesia's Investment Appeal

The Indonesia Stock Exchange (IDX) has stated that reform efforts aimed at increasing transparency, combined with solid corporate fundamentals, will strengthen the long-term investment appeal of the Indonesian capital market. Director Utama of the IDX, Jeffrey Hendrik, said these reform measures represent a commitment to enhancing transparency, strengthening governance, and building a credible Indonesian capital market. “With strong economic and corporate fundamentals, we are optimistic that the Indonesian capital market will continue to be an attractive investment choice for both domestic and global investors in the long term,” he said in an official statement in Jakarta on Friday. He explained that this optimism is reflected in the increasing participation of domestic investors, which reached 28.9 million Single Investor Identifications (SID) based on data from the Indonesian Central Securities Depository (KSEI) as of 30 June 2026. Of this total, investors in shares and other securities reached 9.9 million SID, a growth of 15.1 per cent year-to-date compared to 8.6 million SID at the end of 2025. Currently, domestic investors hold 61 per cent of share ownership, comprising 43.3 per cent domestic institutional investors and 17.7 per cent retail investors, while foreign investors hold a 39.1 per cent stake. In terms of transaction value, domestic investors contributed 65.5 per cent of total trading on the IDX, with retail investors accounting for 52.5 per cent and domestic institutional investors 13 per cent, indicating that the Indonesian capital market is increasingly supported by a strong domestic investor base. Jeffrey confirmed that the Self-Regulatory Organization (SRO), with the support of the Financial Services Authority (OJK), will continue to accelerate reforms focused on improving transparency and the quality of capital market information. These reform policies include the publication of share ownership data for holdings above 1 per cent, an increase in the minimum free float requirement to 15 per cent, an expansion of investor classifications into 39 categories, and the implementation of a High Shareholding Concentration (HSC) mechanism. Furthermore, the IDX will continue to expand information disclosure through the organisation of Public Expose Live, the publication of free float and concentrated share ownership data, and the IDX Hotdesk service as a communication and consultation channel for market participants. The correction in the Jakarta Composite Index (IHSG) during 2026 has had a positive side, making the valuation of the Indonesian stock market more competitive and attractive. As of 8 June 2026, the IHSG was trading at a Price Earnings Ratio (PER) of around 12.85 times, and 434 listed shares had a Price to Book Value (PBV) below one time. “This condition presents opportunities for investors who are oriented towards long-term investment and prioritise fundamental analysis,” Jeffrey said. The solid fundamentals of the capital market are also reflected in the performance of listed companies. Of the 810 listed companies that submitted financial reports as of 31 March 2026, 595 companies, or approximately 73.46 per cent, recorded a net profit. Meanwhile, 221 listed companies distributed cash dividends throughout 2026, reflecting their ability to generate value for shareholders amidst market dynamics.