Transaction Value Plummets, IDX Boss Reveals Solutions to Strengthen Liquidity

Indonesia Stock Exchange (IDX) President Director Jeffrey Hendrik has stated that the liquidity issues in Indonesia’s capital market cannot rely solely on the growth in the number of retail investors. A balance is needed between the supply of quality listed companies and a more diverse investor base.

“The absorption cannot be entirely shouldered by our retail investors,” he said when met at the IDX building on Tuesday (30/6/2026).

Hendrik explained that, from the supply side, the market needs more companies with large market capitalisations to list on the exchange. The presence of large-cap issuers is believed to strengthen the market’s appeal while providing more investment options for market participants.

Meanwhile, from the demand side, the number of retail investors in Indonesia has grown tremendously in recent years. “One quality supply is certainly companies with large capitalisations in significant numbers. From the demand side, our number of retail investors is now extraordinarily large,” he noted.

He stated that the IDX, together with stakeholders, hopes that capital market reforms will increase global investor confidence in the Indonesian capital market. “So that later, foreign investors together with our domestic institutional investors, supported by our retail investors, will together create healthy dynamics in our market,” he said.

Hendrik added that the ideal investor structure is one where foreign investors, domestic institutional investors, and retail investors all actively participate. The combination of these three investor groups will create healthier trading dynamics while reducing dependence on any single investor group.

“What we are doing is certainly to attract more foreign investors. From there, our market will deepen, and we hope its contribution to the economy will be more tangible,” he stated.

For context, the average daily transaction value last week fell 29.13% week-on-week to Rp 17.58 trillion. The decline in transaction value has been occurring since the beginning of the month. Compared to the last week of the previous month, the average daily transaction value has dropped by 38.06%. In yesterday’s trading, the transaction value only reached Rp 8.69 trillion, far below the daily average.