OJK: Foreign fund flows influenced by geopolitics and global interest rates
The movement of foreign fund flows in the Indonesian capital market must be viewed within a global context and does not solely reflect the fundamentals of the Indonesian capital market.
Jakarta (ANTARA) - Hasan Fawzi, Chief Executive of Capital Market, Derivative Finance and Carbon Exchange Supervision at the Financial Services Authority (OJK), stated that the movement of foreign flows in the Indonesian capital market is part of global financial market dynamics influenced by various factors.
He cited these factors as including geopolitical risk, the direction of global interest rate policy, and investor preferences for assets in emerging markets.
“Therefore, foreign fund flows need to be viewed in a global context and do not solely reflect the fundamentals of the Indonesian capital market,” Hasan said in a written response at the July 2026 Monthly Board of Commissioners Meeting (RDKB) press conference in Jakarta on Wednesday.
Although cumulatively since the beginning of the year foreign investors have still recorded a net sell of Rp95.06 trillion in the domestic stock market, Hasan observed that developments in recent periods show increasingly stable market conditions, with foreign selling pressure beginning to ease.
Going forward, Hasan affirmed that OJK, together with the self-regulatory organisations (SROs), will continue to strengthen the competitiveness of the Indonesian capital market through the implementation of ongoing reforms, including improved transparency, disclosure quality, strengthened governance, and market integrity.
The policy measures to be implemented by OJK include:
Strengthening transparency and the quality of share ownership data to support the determination of free float and improve the market’s investability.
Refining the HSC assessment methodology and the effectiveness of supervision over trading activity and ownership concentration risk through data-driven analysis.
Improving various capital market provisions to enhance liquidity, efficiency, and market deepening.
Strengthening engagement with global institutional investors and global index providers to communicate developments in Indonesian capital market reforms in a timely and transparent manner.
Encouraging improved quality of listed companies through strengthened governance, information disclosure, and investor protection.
“These reform initiatives are expected to enhance the investability of the Indonesian capital market and further strengthen investor confidence, thereby attracting higher-quality and more sustainable investment from both domestic and global investors,” Hasan said.