Do Not Conflate MSCI Sentiment with Fundamentals, OJK Says
Jakarta, CNBC Indonesia – The Financial Services Authority (OJK) has urged businesses to distinguish sentiment related to MSCI from the fundamentals of companies and the Indonesian economy, amid turbulence in the stock market.
OJK Board of Commissioners Chair Friderica Widyasari Dewi said that, based on listed companies’ second-quarter 2026 reports, 72% of companies on the Indonesia Stock Exchange (IDX) recorded revenue growth of around 15%, while net profit rose by 16%.
“So, in fact, the fundamentals of these companies are quite good. And you know more than I do about the potential of mining and other sectors, which have enormous potential for the future,” she said at the Indonesian Chamber of Commerce and Industry’s (Kadin) national leadership meeting in Jakarta, according to a report on Friday (30 October 2026).
Friderica, commonly known as Kiki, also said Indonesian banks had some of the highest net interest margins (NIMs) in the world. She said credit growth reached 13.6% in the previous month, its highest level in 10 years, before easing slightly to 13.2%.
Total lending exceeded Rp9,200 trillion, while third-party funds (DPK) grew by double digits to Rp10,492 trillion. The capital adequacy ratio stood at 24.3%, the non-performing loan (NPL) ratio at 2.07%, and liquid assets as a proportion of third-party funds at 24.08%. Corporate lending grew by 21.03%, while lending to micro, small and medium-sized enterprises rose by 2.68% after contracting early in the year. The industry’s loan-to-deposit ratio (LDR) was 88.11%.
“Bank lending is in line with the sales performance of listed companies in Indonesia’s capital market. Manufacturing, trade, agriculture, construction and other sectors are also performing very well,” she added.
Friderica said that, despite oil prices exceeding US$100 a barrel and social tensions in various parts of the world, institutions including the IMF, World Bank and OECD had raised their forecasts for Indonesia’s economic growth in 2026 and 2027. She urged businesspeople to remain confident in the future of the capital market.
She said these factors fostered optimism and hope that sectors could deliver strong performance, continuing to support business development.
“So distinguish current sentiment from the fundamentals of these companies and of the Indonesian economy,” she concluded.