IDX Chief Urges Investors to Remain Rational and Focus on Fundamentals
The Acting President Director of the Indonesia Stock Exchange (IDX), Jeffrey Hendrik, has again reminded investors to make investment decisions rationally by paying attention to company fundamentals and their respective risk profiles. “We at the IDX would like to reiterate that we never tire of reminding investors to make investment decisions rationally, pay attention to fundamentals, and also invest according to each investor’s risk profile,” Jeffrey told journalists at the IDX Building in Jakarta on Thursday (4/6/2026).
Jeffrey revealed three main points that investors need to consider. First, the fundamentals of the Indonesian capital market remain robust. “Our market fundamentals are currently in good condition,” he said. Jeffrey explained that based on listed companies’ financial reports up to the end of 2025, all recorded companies posted profit growth of over 21%. In fact, the net profit of LQ45 index constituents in the first quarter of 2026 grew by nearly 30% compared to the same period last year.
Furthermore, according to Jeffrey Hendrik, around 80% of listed companies recorded a net profit in the first quarter of 2026. This percentage is the highest in the last five years, up from 63% in 2020 and within the 73-76% range during the 2021-2025 period. “This certainly shows that the fundamentals of our listed companies are currently in good condition,” Jeffrey stressed.
Secondly, Jeffrey noted that a number of policies have been implemented by capital market authorities to maintain market stability, such as the share buyback policy without a general meeting of shareholders, which remains in effect. The postponement of short selling, or the ban on short selling, also remains in place.
Thirdly, Jeffrey urged investors to be cautious of information circulating in the market and to always verify before making investment decisions. “We certainly very much hope that investors can make decisions based on accurate information,” he stated. He cited inaccurate information regarding a screenshot that appeared to show an MSCI announcement placing Indonesia in frontier market status. “It turned out that was incorrect information,” said Jeffrey. Regarding Indonesia’s status in the MSCI indices, the IDX is optimistic that Indonesia will remain in the emerging market category. “We have very high expectations that Indonesia will remain in the emerging market,” he concluded.