OJK Says Something is Wrong with the Stock Market as IHSG Continues to Slump

The Financial Services Authority (OJK) has stated that something is wrong with the Indonesian stock market, which continues to languish in negative territory unlike other regional bourses. Hasan Fawzi, Chief Executive of Capital Market, Derivative Finance, and Carbon Exchange Supervision at OJK, said there is an underlying issue that must be addressed. “If it keeps falling, there must be something wrong, and that is what we have to answer,” he said at the Indonesia Stock Exchange (IDX) building in Jakarta on Tuesday (30/6/2026). Hasan noted that the capital market industry is entering a new era where trust is the most valuable foundation. Consequently, the OJK and other capital market regulators will implement comprehensive reforms. “We must carry out measured and sustainable improvements,” he stated. He added that reforms are crucial because the global shift in risk perception has implications for Indonesia. As a developing nation, Indonesia requires significantly larger-scale financing to support its strategic national agenda. “This is where we believe the capital market must be restored to its central role as a primary engine for long-term national financing and an investment hub to support national development financing and economic growth,” he explained. Hasan also highlighted that the national financial system’s stability, supported by the capital market, has actually shown progress. In terms of long-term trends, the number of listed companies has reached 957 issuers, more than doubling from around 440 in 2011. However, the market has suffered a severe downturn, with the IHSG falling 35.49% year-to-date. He stressed that the growing participation of retail investors, the majority of whom are young and inexperienced, represents a significant responsibility. “This is a huge mandate, as the majority of our investors are beginners and young. We must ensure they receive not only encouragement but also in-depth understanding and balanced, validated information,” he concluded.