Financial Watchdog Credits Sovereign Wealth Fund for Market Rebound as Foreign Capital Exits

JAKARTA, Investortrust.id — Indonesia’s top financial regulator has commended sovereign wealth management agency Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara) for stabilizing domestic financial markets following turbulence triggered by global index compiler MSCI Inc.

Addressing a plenary cabinet session evaluating the two-year mark of President Prabowo Subianto’s administration at the Presidential Palace, Financial Services Authority (OJK) Board of Commissioners Chairman Friderica Widyasari Dewi stated that Danantara’s market intervention directly followed instructions from the head of state.

Friderica expressed her appreciation to Danantara during remarks broadcast by the Presidential Secretariat on Friday, Oct. 23, 2026, affirming that the strategic counsel and coordinated actions of the sovereign investor played an extraordinary role in helping domestic bourses recover.

Coordinated state-backed buying underscores Jakarta's determination to erect a financial firewall against external market shocks. As global index providers threaten structural reclassifications that trigger automatic passive capital outflows, mobilizing domestic balance sheets and sovereign investment arms serves as a vital counterweight, buffering asset valuations and restoring institutional liquidity while broader capital market reforms take shape.

Domestic Absorption Counters Foreign Outflows

Friderica noted that the OJK continues to coordinate closely with the Financial System Stability Committee (KSSK), the Coordinating Ministry for Economic Affairs, and Danantara to stabilize trading floors and steer the equity market toward a steady rebound.

She pointed out that the domestic market is demonstrating considerable internal strength in absorbing continuous foreign liquidation. Foreign institutional investors offloaded Rp 3.3 trillion ($207.5 million) over the previous two trading sessions, followed by another Rp 1 trillion ($62.9 million) in net selling, yet the broader market held firm as local institutions engaged in corporate share repurchases and retail market participants stepped in to buy on weakness.

The stabilization was visible on Friday as the Jakarta Composite Index (IHSG) climbed 51.35 points, or 0.95%, to finish at 5,439, adding to Thursday's gain of 59.55 points (1.12%) when the index closed at 5,387. The advance was broad-based, with consumer staples advancing 3.13%, industrial stocks rising 3.12%, and energy shares gaining 2.48%, while several mid-cap equities jumped to their upper auto-rejection limits.

Even so, offshore selling remained pronounced on Friday, with foreign net outflows reaching Rp 1.29 trillion ($81.1 million). The liquidations were heavily concentrated in premier commercial banking tickers, where foreign selling was led by PT Bank Central Asia Tbk with Rp 766.98 billion, PT Bank Rakyat Indonesia (Persero) Tbk with Rp 346.82 billion, and PT Bank Negara Indonesia (Persero) Tbk with Rp 101.25 billion, alongside PT GoTo Gojek Tokopedia Tbk with Rp 79.24 billion and PT Bank Syariah Indonesia Tbk with Rp 60.17 billion.

In contrast, selective net foreign accumulation occurred in shares such as PT Truk Properti Tbk with Rp 130.50 billion, PT Energi Mega Persada Tbk with Rp 111.74 billion, and PT Nusantara Sentrajaya Mandiri Tbk with Rp 110.27 billion, with transactions executed largely across negotiated trading boards.

Regulatory Teeth and Unprecedented Enforcement

Friderica stressed that the OJK is actively evaluating structural enhancements to reinforce the bourse's credibility, liquidity, and operational transparency, ensuring it remains an attractive long-term harbor for public investment.

Addressing specific critiques raised by MSCI regarding enforcement rigor, Friderica highlighted that the regulator has significantly tightened oversight, levying a landmark administrative fine of Rp 1.5 trillion ($94.3 million) against syndicates engaged in coordinated trading. She confirmed that this penalty represents the largest enforcement sanction in the history of Indonesia's capital markets.

Friderica added that regulatory scrutiny remains active, noting that authorities are investigating two additional corporate entities suspected of engaging in illicit market manipulation practices.