The Jakarta Composite Index (JCI) has once again captured market attention as the new week commences, following a period of intense pressure that gripped the market throughout the final week of January. Sharp fluctuations, including two trading halts, sparked considerable concern among market participants regarding the stability of the exchange and trade management. However, the government has moved to reassure investors, emphasizing that the situation should not be overly sensationalized, as the system’s foundational strength remains robust.
Finance Minister Purbaya Yudhi Sadewa asserted that investor anxiety is primarily fueled by psychological sentiment rather than underlying fundamental issues. He underscored that the system at the Indonesia Stock Exchange (IDX) is designed to be automated, ensuring that leadership transitions or managerial disruptions will not impede operational continuity.
According to Sadewa, the panic stemmed from an assumption of chaos during changes within the exchange’s management. In reality, replacement mechanisms are swift and efficient, operating seamlessly without disrupting trading activities. “Why are people scared? They fear there will be chaos in the exchange’s management when directors step down. But our system is quite robust; there’s an automatic mechanism that can immediately replace an existing director from the board, quickly and effectively. This proves the system is well-established,” Sadewa stated at Wisma Danantara on Saturday, January 31st.
He further added, “So, there will be no disruptions at the Exchange. Once that’s clear, they will look at the fundamentals, and our economic fundamentals are strong. I will continue to improve them moving forward.”
Sadewa also highlighted the promising trajectory of the domestic economy. He noted that the government is continuously striving for performance enhancements to achieve higher growth this year. The growth target has even been pushed closer to 6 percent, a level anticipated to positively impact the capital market.
His optimism was evident in his straightforward response when asked about the prospects for JCI strengthening. “It won’t be (in the red), it will definitely go up, it will definitely go up,” he firmly declared.
Furthermore, Sadewa suggested that the current market position actually creates significant room for upward movement. In business cycles, sharp downturns are often followed by strong recoveries. This implies that the potential for a rebound remains substantial, provided that economic fundamentals are maintained.
While acknowledging the persistent possibility of risks, Sadewa downplayed their likelihood, citing the rapid and coordinated nature of policy responses. “When it comes to probabilities, there’s always a chance, but how big is that chance? I believe the probability is small because the foundations are strong,” he concluded.
The IDX reported that the JCI for the week of January 26-30, 2026, closed at 8,329.606, marking a 7.37 percent decrease from the previous week’s close of 8,951.010. Selling pressure triggered temporary trading freezes twice; first when the index plunged 8 percent to 8,261.7 on Wednesday, January 28th, and again on Thursday, January 29th, when it dropped another 8 percent to 7,654.66.
Market capitalization also contracted by 7.37 percent, shrinking to Rp 15,046 trillion from Rp 16,244 trillion. Despite this, trading activity surprisingly increased, with the average daily transaction frequency rising 1.59 percent to 3.82 million transactions. Daily transaction values surged by 29.28 percent to Rp 43.76 trillion, while daily volume reached 63.3 billion shares.
Foreign investors continued to record a net sell of Rp 1.53 trillion on the last day of the week, bringing the year-to-date net sell to Rp 9.88 trillion.