Hasan Fawzi Flags Persistent IHSG Decline: 'If It Stays Red, Something Is Wrong'

The Chief Executive of Capital Market, Derivative Finance, and Carbon Exchange Supervision at the Financial Services Authority (OJK), Hasan Fawzi, believes the persistent weakening of the Indonesia Stock Exchange (IDX) Composite Index (IHSG) signals problems that must be promptly addressed in the Indonesian capital market. Hasan stressed that the IHSG’s continued presence in the red zone cannot be regarded as a normal situation, especially when several stock exchanges in the regional area are beginning to show recovery. “If it stays red continuously, there must be something wrong, and that is what we have to answer,” Hasan Fawzi said at the Indonesia Stock Exchange (IDX) Building in Jakarta on Tuesday, 30 June 2026. The statement was made amid pressure still looming over the domestic stock market. At Tuesday’s closing session, the IHSG stood at 5,643.19, down 177.60 points or 3.05 percent compared to the previous trading day. Hasan said this condition is a task for all regulators and stakeholders in the capital market industry. According to him, the OJK, together with the IDX and other Self-Regulatory Organizations (SROs), will carry out comprehensive reforms so that investor confidence in the Indonesian capital market can increase again. “We, of course, together with Mr Jeffrey, other SROs, and all stakeholders, will continue to drive measurable and sustainable improvements,” he stated. He assessed that the capital market industry is currently entering a new era, where trust has become the most important factor in attracting investor interest. Therefore, improving governance and strengthening the capital market ecosystem are considered steps that cannot be postponed. Hasan explained that Indonesia currently requires substantial financing to support various national development agendas. Under these conditions, the capital market must be able to perform its strategic role as a source of long-term capital formation. “This is where we believe the capital market must be returned to its increasingly strategic central role, namely becoming the main driving engine for long-term capital formation and an investment centre to support national development financing and drive economic growth,” he said.