OJK Reveals Indonesia's Capital Market Faces High Risk Level

JAKARTA - The Financial Services Authority (OJK) stated that the current condition of the capital market is still facing a fairly high level of risk, which is influenced by risk factors in the global financial market.

"The current condition in the capital market where we see risk factors in the global financial market is still quite high," said OJK Capital, Finance, Derivative, and Carbon Exchange Chief Executive Inarno Djajadi at a press conference, Wednesday, March 19.

Inarno said risk factors in the global financial market were still being monitored quite high, which was triggered by the uncertainty of the United States government's tariff policy, the escalation of trade wars, indications of a slowdown in the American economy, and geopolitical dynamics.

Meanwhile, from the domestic side, Inarno said that the Indonesian economy still shows a relatively solid growth outlook, supported by strong domestic consumption and growing investment.

Nevertheless, Inarno said there were a number of quite complex challenges that had to be faced.

From the financial sector, Inarno said that the performance of the financial services sector this year remains solid despite the challenges of the global and domestic economy that continue to overshadow.

"We also believe that overall the fundamental conditions of the company and also issuers are still good," he explained.

In this regard, Inarno said that his party was taking priority policy steps that were in line with the government's efforts to accelerate growth and strengthen the stability of the Indonesian capital market.

"In this context, we direct the financial services sector to take a role in encouraging growth," he said.

Inarno conveyed that the OJK continues to conduct joint assessments with the Self Regulatory Organizations (SRO) and coordinate with market players to plan strategic steps to face current market challenges, as part of mitigation of existing market fluctuations.

In addition, he conveyed that the OJK also implemented various policies to maintain stability and provide protection and space for investors in making decisions.

"The Financial Services Authority has the authority to take steps to determine policies for handling stimulus volatility and/or relaxation for companies that are open to choosing mitigation and reducing market impacts that fluctuate significantly and have the potential to put pressure on capital market stability," he explained.