OJK Reveals Factors Behind Recent Plunge in JCI

The Financial Services Authority (OJK) is closely monitoring movements in the Jakarta Composite Index (JCI), which has undergone a sharp correction recently. Hasan Fawzi, Chief Executive of Capital Market, Derivative Finance, and Carbon Exchange Supervision at OJK, stated that the correction and pressure reflect a market response that has priced in a combination of various factors, both from domestic and global sources. “Indeed, these factors include portfolio adjustments or portfolio rebalancing by investors related to the rebalancing process, as a result of decisions on index constituents announced by global index providers,” Hasan said during an online press conference for the OJK Board of Commissioners Monthly Meeting for May 2026 on Friday (5/6). He added that there have also been developments in various economic indicators and sentiments, both domestic and global, which have influenced and factored into investors’ calculations. Therefore, OJK urges and reminds investors to continue following and observing various market dynamics objectively, proportionally, and rationally. This should be done by prioritising adequate analysis and utilising valid and confirmed information, including public disclosures and financial reports from the issuers in which investors invest. “This is crucial so that every investment decision can be made in accordance with the results of such analysis amidst highly volatile market conditions or current dynamics and pressures,” Hasan explained. Amidst these market dynamics and pressures, he conveyed that fundamentally, the Indonesian capital market and the performance of issuers in general still show sound figures. “This is reflected, among other things, in the high transaction values and liquidity of the domestic stock market. Additionally, based on the latest issuer financial reports for the first quarter of 2026, the performance of our issuers in aggregate generally still recorded positive growth,” Hasan stated. “The majority of companies still booked profits, with aggregate profit growth of more than 21% compared to the same period in the first quarter of the previous year,” he added.