Jakarta, IDN Times – Indonesia’s Finance Minister, Purbaya Yudhi Sadewa, has announced a delay in the implementation of proposed incentives for the capital market, a plan he initially unveiled in October 2025. The Minister cited a lack of concrete action against perpetrators of “fried stock” practices—a colloquial term for manipulated or pump-and-dump schemes—as the primary reason. According to Sadewa, these incentives, designed to bolster the market, cannot proceed until tangible steps are taken to eradicate such manipulative trading from the capital market.
“It cannot be implemented yet. I haven’t seen it; how many ‘fried stock’ players have been apprehended? Are there any?” he questioned, as quoted on Friday, November 21, 2025.
1. Type of Incentives Still Under Discussion
Sadewa underscored that the Ministry of Finance would only consider disbursing these incentives once regulators demonstrate genuine commitment to rectifying trading practices within the capital market. The specifics regarding the form and nature of these incentives, however, remain under discussion and have yet to be finalized.
“We will discuss it later, as they haven’t sorted things out yet. We will observe the situation,” he stated, indicating that the ball is firmly in the regulators’ court.
2. Consumer and Investor Protection Essential for Market Integrity
Reinforcing the importance of a robust market, Inarno Djajad, the Executive Head of Capital Market, Derivative Finance, and Carbon Exchange Supervision at the Financial Services Authority (OJK), emphasized that strong consumer and investor protection is paramount for maintaining the integrity of the capital market. This sentiment, he noted, perfectly aligns with the message conveyed by Finance Minister Purbaya Yudhi Sadewa during a recent dialogue with market players.
Djajad quoted Sadewa, who stressed the critical need to bolster public trust in the capital market, primarily by ensuring that all transactions are conducted fairly, orderly, and efficiently. Inarno made these remarks during an address at the Main Hall of the Indonesia Stock Exchange (IDX) in Jakarta on Friday, October 17.
3. OJK Notes Foreign Investors Record Rp12.96 Trillion Net Buy
Despite the ongoing discussions around incentives and market integrity, the OJK reported a significant influx of foreign investment into the Indonesian stock market. Foreign investors registered a net buy of Rp12.96 trillion in October 2025. Cumulatively for that month, foreign purchases amounted to Rp179.61 trillion, while sales reached Rp166.63 trillion, resulting in the stated net buy figure.
According to Inarno, the domestic capital market maintained its positive trajectory in October 2025, buoyed by improving global sentiment and resilient domestic economic performance.
However, a broader perspective for the year-to-date (YTD) period in 2025 reveals that foreign investors have recorded a net sell of Rp41.79 trillion. Nevertheless, October 2025 also witnessed the Indonesian stock market’s market capitalization reach an all-time high (ATH) of Rp15,560 trillion. Concurrently, the average daily transaction value (ADTV) also hit a record high, amounting to Rp25.06 trillion, underscoring robust market activity.
Summary
Indonesia’s Finance Minister, Purbaya Yudhi Sadewa, has delayed capital market incentives, initially planned for October 2025. This postponement stems from a perceived lack of concrete action against perpetrators of “fried stock” manipulative trading schemes. Sadewa emphasized that incentives cannot proceed until regulators demonstrate genuine commitment to eradicating such practices and bolstering market integrity, a view shared by the Financial Services Authority (OJK) for investor protection.
Despite these regulatory concerns, the Indonesian stock market showed robust performance in October 2025, attracting a net buy of Rp12.96 trillion from foreign investors. During this month, the market also reached an all-time high capitalization of Rp15,560 trillion and a record average daily transaction value of Rp25.06 trillion. However, the year-to-date period for 2025 still recorded a net sell of Rp41.79 trillion by foreign investors.