OJK confident of IDX recovery following combination of pressures this year
Jakarta (ANTARA) - The Financial Services Authority (OJK) is confident that the Indonesia Composite Index (IHSG) will soon recover after being pressured by a combination of global and domestic sentiments throughout the first three quarters of 2026.
Year-to-date (ytd), the IHSG recorded a decline of 2,528.08 points or 29.24 per cent to a position of 6,118.86 as of 5 October 2026, compared to the position of 8,646.94 on 30 December 2025.
“Moving forward, we at OJK remain optimistic regarding the opportunities for domestic market recovery, although movements will continue to be influenced by various global dynamics and the fundamental performance of issuers on the Indonesia Stock Exchange (BEI),” said the Executive Head of Capital Market, Derivatives, and Carbon Exchange Supervision at OJK, Hasan Fawzi, during a press conference for the OJK Monthly Board of Commissioners Meeting (RDKB) for September 202<0xA0>26 in Jakarta, on Monday.
Hasan explained that this optimism is reflected in the IHSG, which is currently beginning to show a recovery phase after hitting its lowest point of 5,342.14 on 08 June 2026.
“The reversal of the IHSG from its lowest point this year in June shows at least some room for market condition recovery in the future,” said Hasan.
In conjunction with this, the authority, alongside Self-Regulatory Organisations (SRO), market participants, and all other stakeholders, will ensure the continued strengthening of transparency, governance, and investor protection within the Indonesian capital market.
Furthermore, efforts will continue to deepen the market to increase the confidence of both local and foreign investors, as well as retail and institutional investors.
“We will continue to ensure that the integrity and investability of our capital market are maintained, so that it can grow sustainably over time,” said Hasan.
From abroad, Hasan explained that pressure on the IHSG was influenced by geopolitical uncertainty, which has caused difficulties in commodity distribution and rising commodity prices, impacting inflation and slowing global economic growth.
He continued, rising inflation has driven expectations that global benchmark interest rates will remain at high levels for a longer period, known as ‘higher for longer’.
“This has been a factor of pressure on the Rupiah, and there has also been an adjustment in investment strategies by investors, particularly foreign investors in our capital market, which has also influenced the market throughout 2026,” said Hasan.
Regarding domestic factors, Hasan noted that global investors are paying close attention to Indonesia’s capital market policy reforms and their implementation throughout 2026.
Additionally, assessments from global index providers are also a point of interest for investors, which ultimately influences investment strategies in the Indonesian capital market.
According to trading closing data on Monday afternoon, the IHSG closed up 81.97 points or 1.36 per cent to 6,118.86. Meanwhile, the group of 45 blue-chip stocks, or the LQ45 index, rose 7.77 points or 1.30 per cent to 603.23.
Stock trading frequency was recorded at 1.64 million transactions, with a total of 40.24 billion shares traded valued at Rp9.96 trillion. A total of 547 stocks increased, 164 decreased, and 252 remained unchanged in value.