Over 400 IDX Stocks Trade Below Book Value, BEI Chief Highlights Long-Term Appeal

JAKARTA - PT Bursa Efek Indonesia (IDX) President Director Jeffrey Hendrik stated that transparency reform efforts, combined with solid corporate fundamentals, will strengthen the long-term investment appeal of the Indonesian capital market. He said the various reform measures represent a commitment to enhancing transparency, strengthening governance, and building a credible Indonesian capital market. “With strong economic and corporate fundamentals, we are optimistic that the Indonesian capital market will continue to be an attractive investment choice for both domestic and global investors in the long term,” Jeffrey said on Saturday. He explained that this optimism is reflected in the increasing participation of domestic investors, which reached 28.9 million Single Investor Identifications (SID) based on data from PT Kustodian Sentral Efek Indonesia (KSEI) as of 30 June 2026. Of that total, stock and other securities investors reached 9.9 million SID, growing 15.1% year-to-date compared to 8.6 million SID at the end of 2025. Currently, domestic investors control 61% of share ownership, comprising domestic institutional investors at 43.3% and retail investors at 17.7%. Meanwhile, foreign investors hold a 39.1% ownership stake. In terms of transactions, domestic investors contributed 65.5% of the total trading value on the IDX. This contribution came from retail investors at 52.5% and domestic institutional investors at 13%, indicating that the Indonesian capital market is increasingly supported by a strong domestic investor base. Jeffrey confirmed that the Self-Regulatory Organization (SRO), with the support of the Financial Services Authority (OJK), will continue to accelerate reforms focused on increasing transparency and the quality of capital market information. Additionally, the IDX will continue to expand information disclosure through the organisation of Public Expose Live, the publication of free float and concentrated share ownership data, as well as the IDX Hotdesk service as a communication and consultation channel for market participants. There is a positive side to the correction of the Jakarta Composite Index (IHSG) throughout 2026, namely making Indonesian stock market valuations more competitive and attractive. As of 8 June 2026, the IHSG was trading at a Price Earnings Ratio (PER) of around 12.85 times. Additionally, 434 listed stocks had a Price to Book Value (PBV) below one. “This condition provides opportunities for investors who are oriented towards long-term investment and prioritise fundamental analysis,” Jeffrey said. Furthermore, the solid fundamentals of the Indonesian capital market are also reflected in the performance of listed companies. Of the 810 listed companies that had submitted financial reports as of 31 March 2026, 595 companies, or approximately 73.46%, recorded a net profit. Meanwhile, 221 listed companies distributed cash dividends throughout 2026, reflecting the companies’ ability to generate value for shareholders amidst market dynamics.