Indonesian Political, Business & Finance News

OJK: Investor Interest in Capital Market Remains Secure

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Finance

The Financial Services Authority (OJK) has assessed that the capital market remains in stable condition through Tuesday, 10 March 2026, according to Hasan Fawzi, OJK Board Member and Acting Head of Capital Market, Derivative Finance and Carbon Exchange Supervision.

Fawzi stated that recent stock market movements primarily reflect price adjustment processes in response to various global developments, including geopolitical dynamics and global economic conditions. “There is no excessive panic,” Fawzi said, as reported by Antara news agency on Wednesday, 11 March 2026.

OJK has recorded that foreign investors continue to make purchases in the domestic stock market. During the period of 1-6 March 2026, net foreign investor purchases totalled approximately IDR 2.23 trillion. When accumulated through 10 March 2026, Fawzi stated that net purchase values could reach IDR 3.3 trillion. According to him, this demonstrates that investor interest in Indonesia’s capital market remains intact despite global sentiment placing downward pressure on financial markets.

Nevertheless, OJK is closely monitoring market developments to determine whether additional policy measures are necessary to maintain market stability. The Financial Services Authority currently applies several market stabilisation policy instruments designed to respond to global trade policy dynamics. These instruments operate amid United States President Donald Trump’s announcement of plans to implement reciprocal trade tariffs and in response to coronavirus pandemic impacts.

The authority’s policies include permission for listed companies to conduct share buybacks without shareholder approval through general meetings. The measures also cover bans on short-selling practices and implementation of asymmetric auto-rejection mechanisms.

OJK stated that the market currently possesses sufficient capacity to absorb external pressures without requiring additional policy tightening, such as stricter share price decline restrictions. “When we issued those policies previously, they have not been withdrawn to this day. So in reality they have been quite effective in responding to volatility like this. But whether it is already time to tighten further or provide additional policies? We will certainly monitor and this requires time,” Fawzi explained.

Beyond net purchase values, OJK has noted that the average daily transaction value in the domestic stock market remains quite high. The average daily transaction value reached close to IDR 30 trillion on 6 March 2026, representing a 65.31 per cent increase year-to-date. “Although there are market responses and volatility, the average daily transaction value figure remains at a high level,” Fawzi stated.

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