Investor in the Indonesian Capital Market Increased by 5 Million, OJK Wants the Stock Exchange to Not Be Easily Swayed

(Photo: Presidential Secretariat Press, Media, and Information Bureau)

JAKARTA - OJK mulai mengandalkan investor domestik untuk menahan guncangan pasar saham Indonesia di tengah derasnya arus modal asing keluar.

OJK Chairperson Friderica Widyasari Dewi said strengthening domestic investors was an important strategy so that the capital market would not easily be shaken when global pressures increased.

"If there is an outside shock, our market will remain more stable," said Friderica Widyasari, who is affectionately called Kiki, at the Presidential Palace Complex in Jakarta, Tuesday, May 5.

According to Kiki, the number of Indonesian capital market investors in the past year has increased by around 5 million single investor identification (SID). The increase is considered important to deepen the domestic market.

OJK sees the dependence of the stock market on foreign funds is still quite large. Therefore, market deepening continues to be encouraged so that the movement of the JCI is not too vulnerable to external sentiments.

On the other hand, global pressure has not really subsided. The United States' high interest rate policy and geopolitical tensions are still triggering outflows from emerging market countries, including Indonesia.

However, Kiki assessed that the movement of the JCI began to show a healthier pattern. He said that the movement of the index is now more in line with major indices such as LQ45 and IDX30.

"Now the movement of stocks is more to the fundamentals," he said.

OJK also continues to improve the capital market, ranging from investor data transparency to strengthening stock liquidity through the free float rule.

According to Kiki, the impact of the improvement could indeed trigger short-term adjustments in the market. However, OJK considers that this step is necessary so that the foundation of the Indonesian capital market is stronger in the long term.