OJK Says IHSG Weakening Remains Modest
The Financial Services Authority (OJK) assesses that the weakening of the Jakarta Composite Index (IHSG) in recent days is still in line with the regional trend of stock market weakness. OJK Board of Commissioners Chair Friderica Widyasari Dewi said the condition coincides with the geopolitical tensions of the Middle East and the global monetary policy outlook, which is predicted to remain hawkish.
‘We see many other exchanges that fell more overnight. Even when some rose, they rose only modestly today,’ Friderica said at a press conference at the Jakarta Stock Exchange Building (BEI).
At the opening of trading today, the IHSG sat in the red zone at 6,599.213. Based on RTI data recorded up to 09:25 WIB, the IHSG fell by 23.417 points or 0.35% to 6,575.822.
Friderica added that the IHSG weakness also relates to domestic sentiment after MSCI’s rebalancing decision on 12 May US time or 13 May Indonesia time. It was still ongoing yesterday when the market reopened after a multi-day holiday.
‘However, if we look at the weakness, it remains modest, i.e. 1.98% on the first day of the MSCI announcement, and yesterday at 1.85% on 18 May after the long holiday,’ she said.
This dynamic, she said, indicates a more fundamental adjustment. In her view, this is a logical consequence of various transformations in Indonesia’s capital market.
‘So we see our index movements becoming more fundamental, and IHSG movements are also relatively in line with the MSCI benchmark index, and the main sub-indices such as LQ45 and IDX30 and IDX80,’ she explained.
‘This reflects price discovery that is more fundamental, where stock movements are supported by fundamental aspects rather than sentiment alone. So this, in our view, is a very good improvement resulting from the reforms carried out,’ she added.
In the midst of MSCI rebalancing, Friderica noted that the net asset value (NAB) of mutual funds this year rose by Rp49.71 trillion or about 6.39%, with total assets under management (AUM) reaching Rp718.44 trillion.
In addition, despite such dynamics, OJK sees investor sentiment improving in terms of confidence to enter the market. ‘This is marked by the addition of 7 million new retail investors in our capital market; year to date, 7 million new investors have joined Indonesia’s capital market,’ Friderica said.
‘Thus this reform is designed to ensure Indonesia’s financial markets not only grow in size but are underpinned by fundamentals, integrity, openness, and so on,’ she concluded. (E-4)
IHSG on the Indonesia Stock Exchange closed down 1.98% or 135.57 points at 6,723.32 on Wednesday (13 May).
The IHSG closed Monday (27 April) in the red zone.
The IHSG is projected to move under pressure on Wednesday (4 March).
On Monday (2 February) the IHSG closed down 4.88% at 7,922.73.
Finance Minister Purbaya Yudhi Sadewa expressed strong confidence that the IHSG’s direction would continue to rise.
Deputy Speaker of the Indonesian House of Representatives Sufmi Dasco Ahmad, together with Danantara CEO Rosan Roeslani and OJK Chair Friderica Widyasari Dewi, visited the BEI on Tuesday (19 May).
The rupiah weakened to Rp17,630 per United States dollar. Finance Minister Purbaya Yudhi Sadewa urged investors not to panic and emphasised that this situation is different from 1998.
The IHSG opened down 1.40% to 6,628 on Monday (18/5/2026). Tensions between the US and Iran and rising oil prices raised concerns about global high interest rates.
Economy assessed that the correction of the IHSG, down about 250 points or 3.73% on Monday (18/5) at 11.33 WIB to 6,472, did not indicate panicked selling.
Chairman of Commission XI of the DPR, Mukhamad Misbakhun, stressed that MSCI’s rebalancing decision should be used as a momentum to repair and strengthen the fundamentals of Indonesia’s capital market.