Market Capitalization drops by Rp1,198 Trillion in One Week

The Indonesia Stock Exchange (IDX) faced a significant reduction in market capitalization this week, with a 7.37 percent decline amounting to Rp15,046 trillion compared to Rp16,244 trillion the previous week. This resulted in a decrease of Rp1,198 trillion within the week. IDX Corporate Secretary, Kautsar Primadi Nurahmad, shared that the stock trading data for the period of January 26-30, 2026, had a mixed closure. The Jakarta Composite Index (JCI) notably plummeted by 8 percent on January 28-29, 2026, due to Morgan Stanley Capital International’s (MSCI) announcement. By the end of the week, the JCI had weakened by 6.96 percent, closing at 8,329.6 on January 30, 2026.

Foreign investors were particularly active during this period, with a recorded net selling of Rp1.53 trillion on January 30, 2026. Throughout the year, foreign investors had a total net selling of Rp9.88 trillion. Of significance was the notable rise in the average daily transaction value on the IDX, increasing by 29.28 percent to Rp43.76 trillion from Rp33.85 trillion the previous week. Additionally, there was a 1.59 percent increase in the average daily transaction frequency, amounting to 3.82 million transactions as compared to 3.76 million transactions the previous week. However, there was a decline in the exchange’s daily transaction volume, which decreased by 3.69 percent to 63.3 billion shares from 65.73 billion shares the previous week.

Following MSCI’s circulation of questions concerning the transparency of Indonesian stock free float data, IDX Director Iman Rachman resigned from his position on January 30, 2026. Subsequently, four officials from the Financial Services Authority (OJK) also announced their resignations, including the Chairperson and Deputy Chairperson of the OJK Board of Commissioners, along with other key members. These events are significant in shedding light on the complexities and challenges faced within the Indonesian stock market and financial regulatory landscape.

As the market capitalization witnessed a drastic decline in a week, the Indonesia Stock Exchange and related regulatory authorities are now grappling with the repercussions of these events. The resignations of key figures within the financial sector and the ongoing concerns regarding transparency and regulation emphasize the need for continued vigilance and accountability in the Indonesian financial markets. Despite these challenges, it is essential for stakeholders to work collaboratively towards restoring trust and stability within the Indonesian stock exchange, ensuring transparency, integrity, and investor protection remain paramount.