Indonesia's Capital Market Under Pressure from All Sides, OJK Highlights MSCI and Middle East
Jakarta, CNBC Indonesia - The Financial Services Authority (OJK) acknowledges that Indonesia’s capital market is currently being buffeted by shocks from various directions, ranging from adjustments in policies by rating agencies to global geopolitics.
OJK Commissioner Council Chair Friderica Widyasari Dewi stated that the influence of global rating agencies on Indonesia’s capital market industry is quite significant. This is reflected in the recent policy adjustments by MSCI, which shook the domestic stock market.
“We have seen for ourselves how one announcement from MSCI can cause a market event in Indonesia’s capital market at the end of January this year. This was then followed by outlook adjustments by rating agencies such as Moody’s and Fitch, which of course also affect various aspects in the market that we have seen so far,” she said at the Indonesia Stock Exchange (BEI) building on Monday (11/5/2026).
According to her, the dynamics that the capital market industry must navigate at present are quite challenging. In addition to policy adjustments by global rating agencies, pressures in the financial markets are becoming increasingly complex due to tensions between countries, namely the United States and Iran.
“This places almost all countries in the world in a difficult position because of energy factors,” she stated.
Because, the woman who is familiarly called Kiki revealed, global geopolitical turmoil also impacts stock markets in related sectors.
“How this Strait of Hormuz, which is an important route for world oil trade, then affects oil prices, affects many things, exchange rates, and then affects markets in various countries including Indonesia,” she explained.
Kiki emphasised that to anticipate this storm, OJK continues to make improvements. Thus, when shocks occur, whether geopolitical events in the Middle East or other matters, it has already prepared, focusing on global investors regarding the Indonesian market.
The combination of these various factors ultimately affects market sentiment and investor risk appetite, reflected in financial market volatility, capital outflows, and pressure on the exchange rate that is being felt strongly at present.
“But of course, we are monitoring this capital outflow prudently; there will be data on it in the next slide of mine, that this is also happening in various other emerging markets,” she added.