JAKARTA – The recent correction in Indonesia’s Composite Stock Price Index (IHSG) is a natural part of the dynamic domestic and global capital markets, according to Dolfie OFP, Deputy Chairman of Commission XI of the House of Representatives (DPR RI) from the PDI Perjuangan Faction. In response, Dolfie has urged the Financial Services Authority (OJK) to establish clear policy priorities to address these market fluctuations in a measured and sustainable manner.
Dolfie clarified that the IHSG correction followed MSCI Inc.’s announcement on January 28, 2026, regarding a freeze on index rebalancing. This significant development immediately triggered a cautious stance among investors, particularly foreign investors, prompting them to adjust their portfolios. “The current dynamics in the domestic capital market have directly led to the IHSG correction. We observed a fairly sharp decline in one session, and investor sentiment has become notably cautious,” Dolfie stated in an interview with reporters on Saturday, January 31, 2026.
He emphasized that this evolving market situation demands a strategic and coordinated response, especially from the OJK as the primary regulator of the financial services sector. Dolfie underscored the critical importance of aligning policy adjustments with international standards, particularly in anticipation of the forthcoming MSCI index announcement scheduled for May. This proactive approach is vital to navigate the complexities of global market shifts effectively.
Looking ahead, Dolfie highlighted the OJK’s immediate priority: “The OJK must prioritize ensuring compliance with international MSCI standards through various structural measures. This is essential to swiftly restore and strengthen investor confidence in the market.” He reiterated that robust adherence to global benchmarks is key to fostering a resilient and trustworthy capital market environment.
Furthermore, Dolfie elaborated on the efforts undertaken by Commission XI DPR RI to bolster the regulatory framework. The commission has provided enhanced support to both the OJK and PT Bursa Efek Indonesia (BEI) through the implementation of new free float regulations. These regulations are strategically designed to reinforce market governance, enhance liquidity, and significantly minimize the risk of price manipulation, thereby protecting investor interests.
The core objectives of the free float regulation, Dolfie explained, are multifaceted: “The regulation is specifically aimed at strengthening large-capitalization stocks, boosting market liquidity, preventing price manipulation, and ultimately enhancing transparency and investor confidence.” He noted that these measures were a key conclusion from the working meeting between Commission XI DPR RI and the OJK, held on December 3, 2025, demonstrating a concerted effort to improve market integrity.
Dolfie expressed his optimism that the policy to increase the minimum free float threshold from 7.5 percent to a more substantial 10–15 percent could be implemented progressively and proportionally. He stressed that for this policy to be truly effective, it must be complemented by efforts to strengthen the domestic investor base, provide targeted incentives, and ensure robust, effective oversight. Such a holistic strategy is crucial for long-term market health.
“A gradual, measured, and differentiated approach is absolutely critical to maintaining market stability, while simultaneously strengthening the foundational pillars of our national capital market for the long term,” Dolfie concluded, underscoring the necessity of prudent and well-thought-out reforms to secure Indonesia’s economic future.