Prabowo Sends Positive Signals to the Capital Market in the midst of the JCI Correction

JAKARTA - President Prabowo Subianto has a message for Indonesian capital market investors regarding the strong domestic economic fundamentals and the government's commitment to transparent investment. This was revealed by Coordinating Minister (Menko) for the Economy Airlangga Hartarto.

In his message, President Prabowo assured domestic and international investors that Indonesia's economic fundamentals remain strong amid current global challenges.

"The President's message (Prabowo Subianto) for the capital market, his message I quoted: 'To domestic investors, international partners, and all Indonesian people, the fundamentals of the Indonesian economy remain strong and resilient'," said Airlangga Hartarto in Jakarta, quoting ANTARA, Saturday, January 31.

He said President Prabowo also ensured that the government continued to be committed to supporting the improvement and development of the Indonesian capital market in order to create a transparent and globally competitive investment climate.

"The government stands firmly behind our financial markets and we are committed to a transparent, fair and world-class investment climate," said Coordinating Minister Airlangga, quoting President Prabowo's message.

The domestic capital market corrected sharply following MSCI's announcement regarding the review and rebalancing of stocks in Indonesia.

The Composite Stock Price Index (IHSG) was corrected from 8,980.23 at the close of trading on Tuesday (27/1) to 8,232.20 at the close of trading on Thursday (29/1). IHSG strengthened again on Friday (30/1) by closing at 8,329.61.

To dampen these negative sentiments, the government has announced that it will accelerate the completion of the demutualization rules of the Indonesia Stock Exchange (IDX) so that it can be processed this year.

This step is considered important to strengthen governance, increase transparency, and reduce the potential for conflicts of interest in the capital market.

"The demutualization of this exchange will also open investment. The stage is actually included in the P2SK Law (Development and Strengthening of the Financial Sector)," said Coordinating Minister for Economic Affairs Airlangga Hartarto at a press conference in Jakarta, Friday (30/1).

The Financial Services Authority (OJK) and PT Bursa Efek Indonesia (BEI) will also immediately adjust the rules for the free float limit of shares from the previous 7.5 percent to 15 percent, which is targeted to take effect from February 2026.