Luhut Meets OJK Head to Discuss MSCI Impact and BPR Bad Debts
The Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, met with the leadership of the Financial Services Authority (OJK) on Monday, 18 May 2026, to discuss developments in the capital market and the Indonesian economy.
According to a recent update on his official Instagram, Luhut received a visit from OJK officials, including the Chair of the OJK Board of Commissioners, Friderica Widyasari Dewi, and the Executive Head of Insurance, Guarantee, and Pension Fund Supervision, Ogi Prastomiyono, along with other deputy commissioners. Luhut noted that the OJK has been assigned crucial additional responsibilities amidst global uncertainty, tasked not only with maintaining financial sector stability but also ensuring that confidence in the Indonesian economy remains robust.
Key discussion points included Rupiah dynamics, financial market developments, and the current outlook of global investors towards Indonesia. Luhut emphasised that while challenges are significant, the momentum for reform must be pursued boldly and consistently. He specifically highlighted the need for capital market reform, noting that while OJK’s steps have been appropriate, some global investors remain in a ‘wait and see’ mode regarding the consistency of implementation and long-term legal certainty, which is essential for building trust.
Luhut also shared an encounter with the MSCI team, who expressed high expectations for the Indonesian capital market, viewing it as a significant opportunity that must not be wasted. Furthermore, Luhut raised concerns regarding the condition of Rural Banks (BPR), noting an increase in Non-Performing Loans (NPL). While the OJK has taken strategic steps, Luhut stressed that the strengthening of BPRs must be comprehensive to prevent new vulnerabilities, particularly for small communities and regional businesses.
As a key driver of the Indonesian economy, Luhut urged the OJK to remain agile and vigilant in decision-making, emphasising that while supporting government priority programmes is important, improving governance and risk management is non-negotiable. He encouraged the OJK to operate with integrity and compliance, noting that building national economic trust is a collective responsibility.
Coinciding with the meeting, the Indonesia Composite Index (IHSG) opened significantly lower on Monday, dropping 94.34 points or 1.40% to 6,447.97. Within minutes of the market opening, the index fell further by 2.59%, eventually plunging 4.3% to the 6,428 level after an hour of trading.