No Need to Panic Over Global Turbulence; OJK Data Shows Indonesia's Financial Market Remains Strong

The Financial Services Authority (OJK) has assessed that Indonesia’s financial market continues to demonstrate resilience amid heightened global economic and geopolitical turbulence. Data on transaction activity and investor capital flows indicate that domestic market conditions remain stable.

Hasan Fawzi, Acting Head of Executive for Capital Market, Derivative Finance and Carbon Exchange Supervision at OJK, stated that current global dynamics are indeed influenced by geopolitical fragmentation and economic uncertainty worldwide. These conditions have triggered market volatility across various countries, including Indonesia.

Hasan elaborated that escalation of conflict in the Middle East has the potential to drive up global commodity prices, which could subsequently impact the broader economy. Such impacts include potential pressure on global inflation levels and the fiscal positions of various nations.

“Rising commodity and energy prices will of course directly increase pressure on fiscal positions and naturally trigger responses in our capital market,” Hasan said whilst speaking with media in Jakarta on Tuesday, 10 March 2026.

Hasan explained that these conditions warrant close monitoring because global turbulence frequently produces secondary or second-round impacts on the financial sector. In the early phases of uncertainty, investors typically adjust their investment strategies.

Hasan noted that during the initial phase of a global crisis, investors tend to reallocate their portfolios towards instruments deemed safer. “Usually what happens during the initial phase of a crisis is a flight to quality, where investors reallocate their investments to instruments considered safer,” said Hasan.