Indonesia exchange cites market resilience despite foreign selling
Exchange development director Iding Pardi said continuing foreign outflows showed investor confidence remained a challenge for capital-market reforms.
Indonesia’s stock market remains resilient despite sustained selling by foreign investors, the Indonesia Stock Exchange said on 27 October 2026, pointing to growing trading liquidity, sound broker finances and an expanding investor base.
Iding Pardi, the exchange’s development director, told reporters that foreign fund movements were not the only measure of market resilience. He said exchange operations were functioning well, exchange members’ capital and liquidity remained adequate, and most listed companies had sound and improving fundamentals.
Still, Iding acknowledged that continuing foreign outflows reflected a challenge in strengthening investor confidence. He said addressing that issue was a focus of the exchange’s capital-market reforms.
The exchange welcomed feedback from market participants and other stakeholders on the reforms, he said. It also maintained communication and coordination with parliament and the government.
On enforcement, Iding called for sanctions that deter violations, saying this aligned with concerns raised by MSCI about improving the credibility and governance of Indonesia’s capital market.
He said enforcement should protect investors who comply with the rules rather than discourage those acting in good faith. Administrative sanctions also needed to be distinguished from criminal offences, he added.
Iding said a more credible, fair and orderly market was expected to attract more long-term investors from Indonesia and abroad.
