Full Statement from OJK Head at the Indonesia Stock Exchange This Afternoon

Jakarta, CNBC Indonesia - The Chairperson of the Board of Commissioners of the Financial Services Authority (OJK), Friderica Widyasari Dewi, has spoken out regarding the performance of the Jakarta Composite Index (IHSG), which has continued to decline throughout the year. The figure, often referred to as Kiki, stated that the weakening of the IHSG over the past few days remains moderate and is in line with the downward trend in regional markets.

This afternoon, Kiki visited the exchange accompanied by the Vice Chairman of the House of Representatives, Sufmi Dasco, the CEO of Danantara, Rosan Roes_lani, and the COO of Danantara as well as Head of BP BUMN, Dony Oskaria, alongside the exchange’s directors.

Below is the full statement from the OJK Chairperson regarding the ongoing pressure on the IHSG:

’Today, we are joined by Prof. Sufmi Dasco (Vice Chairman of the House of Representatives), Mr Rosan Roeslani (CEO of Danantara), and Mr Dony Oskaria (COO of Danantara), accompanied by the exchange directors, to respond to recent developments. I would like to thank Prof. Dasco and the Danantara team for their attention.

Observing current developments, the weakening of the IHSG over the last few days is consistent with the downward trend in regional markets. Some other markets have fallen more deeply or risen slightly today, driven by geopolitical tensions in the Middle East, expectations of hawkish monetary policies, and responses to the MSCI rebalancing decision, which is still being processed following the market reopening after the holiday.

However, if we look at the decline, it remains moderate, at 1.98% on the first day of the MSCI announcement, and 1.85% on 18 May following the long holiday. This dynamic indicates an adjustment based more on fundamentals. As we have always stated, this is a logical consequence of the various capital market transformations we are implementing. We see that our index movement is now more fundamentally driven.

Furthermore, the movement of the IHSG is now relatively aligned with the MSCI benchmark index as well as major sub-indices such as the LQ45, IDX30, and IDX80. This reflects a more fundamental price discovery process, where stock movements are supported by fundamental aspects rather than mere sentiment. In our view, these improvements are very positive.

We can also share some good news: despite the MSCI rebalancing news, the Net Asset Value (NAV) of our mutual funds has increased by Rp49.71 trillion this year, driven by net subscriptions from retail investors. This represents an increase of approximately 6.39%, bringing our total Assets Under Management (AUM) to Rp718.44 trillion.

Another positive note is that despite current dynamics, investor confidence in entering the market is increasing, evidenced by the addition of 7 million new retail investors in our capital market; year-to-date, we have seen 7 million new investors in the Indonesian capital market.

This demonstrates that our reforms are aimed at ensuring Indonesia’s financial market grows not only in size but also in terms of fundamentals, integrity, and transparency.

For that reason, we express our gratitude to Prof. Sufmi Dasco, Mr Rosan, and Mr Dony for their presence today. We also kindly request them to share some points with the media to communicate to our market, specifically to our domestic retail investors.’