Flooring Guide by Cinvex – , JAKARTA — The critical issue of transparency has emerged as a significant challenge for the Indonesia Stock Exchange (IDX) and the Financial Services Authority (OJK). Both institutions face the daunting task of restoring the reputation and performance of the Jakarta Composite Index (JCI), which experienced a sharp decline over the past two trading days.
Finance Minister Purbaya Yudhi Sadewa has consistently highlighted the detrimental practice of “fried stocks” (saham gorengan), a term referring to pump-and-dump schemes that threaten the credibility of the capital market. Purbaya has repeatedly urged authorities and regulators to decisively eliminate these manipulative practices from the market.
“If the stock market falls due to ‘fried stocks,’ I have long warned to cleanse the exchange of such practices,” Purbaya stated yesterday.
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Echoing Minister Purbaya’s sentiments, Said Abdullah, Chairman of the House of Representatives’ Budget Committee (Banggar), called upon the stock exchange authorities and the OJK to take immediate action in response to the JCI’s sharp drop in the last two trading sessions.
According to Said, despite the recent downturn, market participants still hold considerable trust in the Indonesian stock exchange. This confidence is evident in today’s JCI capitalization value, which significantly surpassed that of yesterday.
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However, Said cautioned against complacency, urging authorities not to overlook the various corrections raised by MSCI concerning the Indonesian stock market. Specifically, he pointed to critical issues such as free float, real liquidity, and the transparency of several large-cap issuers on the Indonesian exchange.
“Market participants, exchange authorities, and the OJK must heed MSCI’s message as constructive criticism for building a healthy stock market. All parties involved must reform, be open to constructive feedback from anyone, especially regarding the administrative improvements suggested by MSCI,” Said emphasized.
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Vulnerable to Money Laundering Practices
Adding another layer of concern, the Financial Transaction Reports and Analysis Center (PPATK) has identified the capital market as a sector highly susceptible to money laundering activities. This vulnerability is underscored by a consistent annual increase in suspicious transaction reports originating from the capital market sector.
PPATK data reveals that during 2025, a staggering 4,593 suspicious transactions were flagged as potentially linked to criminal activities within the capital market. This figure represents a substantial 62.9% increase compared to 2024.
Furthermore, when benchmarked against 2023, the number of suspicious financial transactions indicative of capital market crimes recorded by PPATK surged by an alarming 268%, climbing from 1,248 to 4,593 transactions.
The financial intelligence agency also noted that the majority of these suspicious financial transaction reports were filed by securities companies and investment managers. Last year, securities companies accounted for 3,380 such reports, while investment managers submitted 1,570 reports.
A Moment for Reform
Analysts have compiled a series of observations regarding MSCI’s decision to freeze the rebalancing of its index for Indonesian stocks. These insights are crucial for rebuilding investor trust in the Indonesian capital market.
Chory Agung, an analyst at BRI Danareksa Sekuritas, clarified that the primary focus for the IDX and Self-Regulatory Organizations (SROs) should extend beyond mere technical index compliance sought by MSCI. Instead, the focus must shift towards fostering data integrity to bolster confidence among both global and domestic investors in Indonesia’s capital market.
Chory asserted that MSCI’s announcement, made during trading on Wednesday evening (January 28, 2026), could have significant long-term repercussions for the Indonesian capital market.
“If not met with tangible improvements, the consequences could include a stagnant or declining weight for Indonesia in global indices, heightened volatility, and a market that becomes increasingly selective for foreign investors,” he told Bisnis on the specified date.
Nonetheless, Chory suggested that if the IDX and SROs navigate this phase adeptly and leverage it as a catalyst for reform within the domestic stock market, MSCI’s freeze on Indonesian stocks could ultimately strengthen the capital market’s credibility moving forward.
Chory identified several critical areas requiring immediate attention from the IDX and SROs. These include refining the classification of affiliated versus independent shareholders, ensuring consistency and synchronization of ownership data across the OJK, IDX, and KSEI (Indonesian Central Securities Depository), and maintaining active, transparent communication with MSCI and global investors.
“The core focus isn’t just about index technicalities; it’s about data credibility, such as providing more granular and auditable free float data. MSCI isn’t demanding perfection, but rather a clear and measurable direction for improvement,” he concluded.