OJK Confident in Domestic Capital Market Resilience Amid Mounting Pressures
Amid heightened uncertainty and portfolio adjustments by investors, the domestic stock market experienced a phase of pressure and consolidation throughout May 2026. The Jakarta Composite Index (IHSG) closed at 6,127.38 at the end of the May 2026 period, correcting by 11.92% month-on-month or 29.14% year-to-date. Entering early June 2026, the Financial Services Authority (OJK) noted that the market appears to continue its dynamic and consolidative movement. OJK Chief Executive for Capital Market, Derivative Finance, and Carbon Exchange Supervision Hasan Fawzi confirmed that his office would continue to monitor developments in the period ahead.
Amidst these dynamics, the domestic capital market continues to demonstrate adequate resilience. This is reflected in well-maintained liquidity, with the average bid and ask spread in May 2026 remaining at a low level of 1.5%. This reflects that market liquidity remains well preserved. On the other hand, foreign investors recorded a net sale in the stock market of Rp4.1 trillion month-on-month in the reporting period. In the bond market, the Indonesia Composite Bond Index at the end of May 2026 closed at 437.26, strengthening by 0.32% month-on-month. Meanwhile, the average yield on government securities rose by 5.61 bps month-on-month. This was influenced by the dynamics of risk perception due to global uncertainty.
The performance of the investment management industry was recorded as being maintained in the reporting month, with the net asset value of mutual funds recorded at Rp685.76 trillion. Year-to-date, this still demonstrated positive growth of 1.55%, despite net redemptions of Rp1.77 trillion in May 2026. However, year-to-date, mutual fund investors still booked a significant net subscription of Rp21.61 trillion. The number of investors in the capital market continued its increasing trend with a further addition of 1.26 million investors month-on-month in May 2026, bringing the total number of investors to 27.75 million, a 36.27% growth year-to-date.
Regarding the MSCI and FTSE Russell rebalancing announcements in May 2026, the OJK together with Self-Regulatory Organisations continue to monitor market developments and conduct intensive coordination with all stakeholders and market participants. This is to ensure that trade transactions, risk management, and especially transaction settlements in the capital market during this rebalancing period can proceed well and smoothly. The market stabilisation policies currently in force are judged to remain relevant and effective for maintaining stability in the domestic capital market. Going forward, the OJK and Self-Regulatory Organisations will also continue to monitor various agendas of global index providers and ensure that ongoing capital market reforms can continue to be implemented consistently in an effort to strengthen the credibility and investment attractiveness of the Indonesian capital market.