The Financial Services Authority (OJK) is closely monitoring the escalating conflict involving Israel, the United States, and Iran, assessing its potential repercussions on the Indonesian capital market. This vigilant oversight is crucial as global geopolitical tensions can significantly impact domestic financial stability.
Hasan Fawzi, the Acting Chief Executive of OJK’s Capital Market, Financial Derivatives, and Carbon Exchange Supervision, stated that this proactive approach ensures that any policy decisions made are precisely aligned with the prevailing market conditions. Such measures are vital to safeguard the integrity and performance of Indonesia’s financial sector.
“In response to market volatility observed in early March 2026, primarily triggered by escalating geopolitical conflict in the Middle East region, the OJK is, of course, continuously monitoring market movements,” Hasan explained during the February 2026 RDKB Press Conference on Tuesday, March 3rd. He emphasized that the authority is actively coordinating with Self-Regulatory Organizations (SROs) like the Indonesia Stock Exchange (IDX), KSEI, and KPEI, along with other key players in the capital market industry, to implement necessary policy measures effectively.
Addressing the pressure on the domestic stock market in the previous February, Hasan affirmed that conditions have since improved, demonstrating resilience. He highlighted that the Jakarta Composite Index (IHSG) closed at 8,235.49 at the end of February 2026. While this represented a 1.13 percent correction month-to-date and a 4.76 percent correction year-to-date, the market showed signs of stabilization.
Despite these corrections, Hasan noted a robust average daily transaction value in February, reaching an impressive Rp 25.62 trillion. This strong performance indicates sustained liquidity and investor engagement within the Indonesian capital market.
“This figure is consistently above Rp 20 trillion, a trend we’ve observed since August 2025,” Hasan added, underscoring the healthy and sustained activity in the market. This consistent high transaction value reflects underlying strength despite global uncertainties.
Furthermore, investor participation in the domestic capital market saw significant growth, with an additional 1.8 million investors recorded in February 2026. This surge brought the total number of investors to a remarkable 22.88 million, highlighting increasing interest and confidence in local investment opportunities.
Concurrently, foreign investors demonstrated renewed confidence, registering a net buy of Rp 0.36 trillion in February 2026. This marked a notable reversal from January 2026, when foreign investors recorded a substantial net sell of Rp 9.888 trillion, indicating a positive shift in market sentiment and potentially stronger foreign capital inflows.
Hasan further elaborated that amidst these dynamic market conditions, the investment management industry has maintained its positive performance. The value of Assets Under Management (AUM) reached an impressive Rp 1,115.71 trillion as of February 26, 2026, reflecting a healthy increase of 1.11 percent month-to-date and 7 percent year-to-date. This growth underscores the robust health and expansion of the broader investment sector in Indonesia.
Summary
The Financial Services Authority (OJK) is closely monitoring the escalating conflict involving Israel, the United States, and Iran to assess its potential repercussions on the Indonesian capital market. This proactive approach, including coordination with Self-Regulatory Organizations, aims to align policy decisions with prevailing market conditions and safeguard financial stability. Although market volatility was observed in early March 2026 due to Middle East geopolitical tensions, the domestic stock market has since shown resilience and stabilization.
Despite earlier corrections, the Jakarta Composite Index (IHSG) closed at 8,235.49 at the end of February 2026, indicating signs of stabilization. The market demonstrated sustained liquidity, with an impressive average daily transaction value of Rp 25.62 trillion in February. Investor participation also grew significantly, adding 1.8 million new investors to reach a total of 22.88 million, while foreign investors registered a net buy of Rp 0.36 trillion. Furthermore, the investment management industry maintained positive performance, with Assets Under Management reaching Rp 1,115.71 trillion.