Global Turmoil Pressures Jakarta Stock Exchange as OJK Assures No Panic
Jakarta, Indonesia — The Financial Services Authority (OJK) has affirmed that there is no excessive panic in the domestic capital market despite geopolitical conflict in the Middle East triggering global turmoil and pressure on the Jakarta Composite Index (IHSG).
Acting Head of Capital Market Supervision, Derivative Finance, and Carbon Exchange at OJK, Hasan Fawzi, assessed that investor responses remain relatively rational amidst market volatility.
According to Hasan, global dynamics in 2026 are indeed placing significant pressure on financial markets, including geopolitical and geoeconomic fragmentation and escalation of armed conflict in the Middle East.
“Stock movements are indeed highly volatile. At the end of January, we experienced volatility with extraordinarily high negative sentiment at that time,” Hasan said during a discussion in Jakarta on Tuesday, 10 March 2026.
He explained that pressure increased again in early March with escalation of conflict in the Middle East region, prompting significant index declines.
“In early March, we again witnessed how fairly sharp and high pressure occurred again in our stock market, marked by significant index declines,” he said.
Despite this, market conditions are not showing the panic seen during the Covid-19 pandemic crisis.
“The situation is different from the crisis we experienced during the pandemic, where panic was reflected in one-sided market phenomena. The market only sold, with no counterparties willing to buy,” said Hasan.
“For this time, from the beginning of the year to the latest developments in the Iran war, we analysed that the market remains calm, daily average transaction value (RNTH) figures remain normally high, and there is no one-directional trading,” he continued.
Furthermore, foreign investors are capitalising on the price correction momentum to undertake selective share purchases.
“Foreign investors are capitalising on the momentum of falling share prices to undertake selective purchases and enter certain stocks,” Hasan said.
He noted that in March there was a reversal of foreign capital flows into net buying.
“In this month there was actually a net buy of Rp 2.23 trillion, although on a year-to-date basis total foreign investment remains net sell,” he said.
On the other hand, Hasan acknowledged that market turmoil continues to be influenced by various external factors, ranging from global index provider perspectives, the cycle of international rating agency reviews, to the economic impact of Middle East conflict that triggered rising global energy prices.
“The increase in oil prices will of course directly increase pressure on our fiscal and monetary positions,” he said.
However, he affirmed that the fundamental activity of the domestic capital market remains strong despite the index being corrected significantly since the beginning of the year.
“Although there are market responses and volatility with many major events affecting sentiment, we see transaction figures holding at very high levels,” Hasan said.