Financial Services Authority Ensures Domestic Stock Market Remains Stable Amid Middle East Conflict
Jakarta – Indonesia’s Financial Services Authority (OJK) has assured that domestic stock market valuations remain relatively stable as of Tuesday, 10 March 2026, with no excessive panic among market participants despite escalating geopolitical conflict in the Middle East.
Hasan Fawzi, Commissioner Board Member serving as interim chief of OJK’s Capital Market, Derivatives Finance and Carbon Exchange Supervision division, explained that recent stock market movements primarily reflect price adjustment processes in response to various global developments, including geopolitical dynamics and global economic conditions.
“There is no excessive panic,” Hasan said in Jakarta on Tuesday evening, 10 March 2026.
The OJK noted that foreign investors continue to purchase shares in the domestic market. During the period 1-6 March 2026, foreign investors’ net purchases were recorded at approximately IDR 2.23 trillion.
When accumulated through 10 March 2026, Hasan stated that net purchase values could reach IDR 3.3 trillion. According to him, this demonstrates that investor interest in the Indonesian capital market remains intact despite global sentiment placing pressure on financial markets.
Nevertheless, the OJK is closely monitoring market developments to determine whether additional policy measures are necessary to maintain market stability.
The OJK currently maintains several market stabilisation policy instruments implemented in response to global trade policy dynamics as United States President Donald Trump announced plans for reciprocal trade tariff implementation, and in response to COVID-19 pandemic impacts.
The applied policies include permission for listed companies to conduct share buybacks without shareholder meeting approval, prohibition of short-selling practices, and implementation of asymmetric auto-rejection mechanisms.
The OJK stated that the market currently has sufficient capacity to absorb external pressures without requiring additional policy tightening, such as stricter share price decline restrictions.
“When we issued these policies, they have not been revoked until now. So actually it has been quite effective in responding to volatility like this. But is it time to tighten further or introduce additional policies? We will certainly monitor this and it requires time,” he said.
Beyond net purchase values, the OJK noted that average daily transaction values in the domestic stock market remain sufficiently high. Average daily transaction values reached nearly IDR 30 trillion as of 6 March 2026, representing a year-to-date increase of 65.31 percent.