Factors Causing IDX-Composite Pressure According to OJK

The Financial Services Authority (OJK) has revealed several factors contributing to the recent pressure on the stock market. According to OJK records, the Indonesia Composite Index (IHSG) corrected by 11.92 per cent monthly and 29.14 per cent annually in May 2026.

Hasan Fawzi, OJK Executive Head of Capital Market Oversight, Derivatives, and Carbon Exchange, stated that the correction and pressure on the IHSG reflect market responses that have accounted for a combination of both global and domestic factors. Hasan noted that one such factor is portfolio adjustments by investors following rebalancing announcements by global index providers.

“However, there are also developments in various economic indicators and sentiments, both domestic and global, which also influence and are factored in by investors,” Hasan said during a press conference at the Monthly Board of Commissioners Meeting held online on Friday, 5 June 2026. He urged investors to observe market dynamics objectively, proportionally, and rationally.

According to Hasan, the fundamentals of the Indonesian capital market still demonstrate good performance. This is reflected in the high transaction value and liquidity of the domestic stock market. Furthermore, Hasan noted that first-quarter 2026 financial reports show that, in general, the performance of issuers continues to record positive growth.

Hasan stated that OJK will continue to closely monitor market dynamics following the Morgan Stanley Capital International (MSCI) and FTSE Russell rebalancing. Looking ahead, he said that OJK and Self-Regulatory Organisations (SROs) will continue to monitor the agendas of Global Index Providers. “We will also ensure that the ongoing capital market reforms can be implemented consistently in an effort to strengthen the credibility and investment attractiveness of the capital market in Indonesia,” he added.