IDX Asserts Solid Market Fundamentals Amid IHSG Correction
The Indonesia Stock Exchange (IDX) has issued a calming statement amid significant capital market fluctuations over the past two days. Although the Jakarta Composite Index (IHSG) experienced a significant correction in the range of 3-4 percent, the exchange authority affirms that the fundamentals of issuers and the national capital market remain solid.
Based on trading data, on Wednesday (3/6), the IHSG closed sharply lower by 4.11 percent, or 254.36 points, to 5,941.07. Selling pressure continued into the first trading session on Thursday (4/6) with a decline reaching 3.48 percent. However, towards the market close, the IHSG managed to trim its losses and ended in a more limited negative territory, down 1.70 percent.
Acting President Director of the IDX, Jeffrey Hendrik, stated that the current market volatility does not reflect the fundamental condition of listed companies, which remains very positive. “Our market fundamentals are currently in good shape,” said Jeffrey at the IDX Building, Jakarta, Thursday (4/6).
The IDX’s optimism is based on the financial performance of issuers showing a strong growth trend. Jeffrey explained that throughout the 2025 financial year, all listed companies in aggregate recorded profit growth of more than 21 percent. This positive trend continued into early 2026. In the first quarter of 2026, the LQ45 blue-chip stock group recorded net profit growth of up to 29.9 percent compared to the same period the previous year. In addition, the profitability level of issuers also showed impressive figures.
“Around 80 percent of listed companies booked a net profit in the first quarter of 2026. This figure is the highest in the last five years,” explained Jeffrey. By comparison, in 2020 only 63 percent of issuers booked a profit, while the 2021-2025 period saw a range of 73-76 percent.
In response to market dynamics, the IDX continues to carry out reforms to maintain investor confidence by increasing transparency and providing more granular data, including information related to high shareholding concentration. From a regulatory perspective, the IDX confirmed that a number of easing policies agreed last year are still in effect to dampen volatility, including the policy on share buybacks without general meeting of shareholders (RUPS) approval and the postponement of short selling transactions.
Closing his statement, Jeffrey urged investors not to fall into market panic selling. He emphasised the importance of rational analysis and focusing on company fundamental performance when making investment decisions. “We certainly never tire of reminding investors to make investment decisions rationally, pay attention to fundamentals, and invest according to their respective risk profiles,” he concluded.