Jakarta (VNA) — Indonesia has reaffirmed its determination to crack down on stock market manipulation and accelerate financial sector reforms, as part of efforts to restore confidence in the country’s asset markets.
Friderica Widyasari Dewi, a senior official of the Financial Services Authority (OJK), said the regulator will initiate investigations into allegations of price rigging and market dumping.
Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto said that President Prabowo Subianto has instructed the OJK, the Ministry of Finance and the stock exchange to ensure the orderly and normal functioning of financial markets. Hartarto conveyed the President’s message that the government is firmly committed to building a transparent, fair and world-class investment environment.
These moves followed a week of sharp volatility in Indonesian assets, triggered by concerns raised by MSCI over transparency issues in Southeast Asia’s largest stock market. Benchmark equities suffered their worst two-day decline in nearly three decades before regulatory intervention helped stabilise sentiment, with the Jakarta Composite Index closing up 1.2% in the January 30 trading session.
Indonesian authorities said they are preparing additional measures to support the market, including changes to the ownership structure of the stock exchange and an increase in the ceiling for insurers’ capital allocation to equities. Other recently announced reforms include doubling the minimum free-float requirement to 15% starting in February, as well as the potential participation of the sovereign wealth fund Danantara in the market./.
Indonesia Economic Summit 2026 gets under way
The two-day summit focuses on key issues including inclusive growth, national economic models, trade and industrial investment policies, digital transformation, business competitiveness, ASEAN’s economic position, and strategies to address global risks.
