Jakarta, IDN Times – The Indonesian Financial Services Authority (OJK) has revealed that the average valuation of shares in Indonesia is currently more attractive and affordable compared to regional stock exchanges. This development coincides with the Jakarta Composite Index (IHSG) continuing its retreat from its All-Time High (ATH), which was achieved in early 2026.
Hasan Fawzi, the Chief Executive of Capital Market, Derivative Finance, and Carbon Exchange Supervision at OJK, explained that this market condition stems from prevailing global dynamics. He highlighted that the Price-to-Earnings Ratio (PER) for Indonesian stocks currently stands at an appealing 16 times.
“Our IHSG is now significantly below its peak position reached during the all-time high in mid-January. Currently, even when compared regionally, the average PER level of our stocks is lower than the average PER of other exchanges, now at the 16 times level,” Hasan stated during a press conference at the Indonesia Stock Exchange (BEI) building on Wednesday, May 13, 2026.
The prevailing market sentiment has led Hasan to view the current situation as a compelling opportunity for investors to consider entering the capital market. However, he strongly advised investors to remain selective, meticulously choosing stocks that demonstrate strong long-term prospects and potential for sustained growth.
“We hope our investors will selectively leverage this momentum to enter the market and choose the best stocks that are prospectively positioned to continuously improve their performance over time,” Hasan emphasized, urging a strategic approach to investment.
Today, the IHSG once again experienced notable pressure during trading hours. The index opened with a decline of 94.96 points (-1.38 percent), settling at 6,763.94, and remained in the red zone throughout the morning. While the IHSG did touch its ATH in mid-January 2026, the OJK views the current day’s market pressure as a short-term reaction, primarily influenced by the announcement of MSCI’s rebalancing.
“Today, if we observe until 10 AM, a decrease in the index was confirmed, but with a level of activity that we deem still within reasonable limits and as a consequence of the rebalancing reaction,” Hasan elaborated, reassuring stakeholders about the market’s underlying stability.
Earlier, MSCI announced its global index review for May 2026, which revealed significant changes for the Indonesian market. In its latest announcement, MSCI removed six domestic stocks from the MSCI Global Standard Index, with no new additions to this prestigious index.
The six Indonesian stocks delisted from the MSCI Global Standard Index are PT Amman Mineral International Tbk (AMMN), PT Barito Renewables Energy Tbk (BREN), PT Chandra Asri Pacific Tbk (TPIA), PT Dian Swastatika Sentosa Tbk (DSSA), PT Petrindo Jaya Kreasi Tbk (CUAN), and PT Sumber Alfaria Trijaya (AMRT).
Conversely, MSCI also removed 13 domestic stocks from its MSCI Global Small Cap Indexes. Interestingly, one stock, PT Sumber Alfaria Trijaya (AMRT), which was delisted from the Global Standard Index, was simultaneously added to the Global Small Cap Index, indicating a shift in its index classification.
The following is the list of 13 stocks removed from the MSCI Global Small Cap Index:
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PT Aneka Tambang Tbk (ANTM)
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PT Astra Agro Lestari Tbk (AALI)
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PT Bank Aladin Syariah Tbk (BANK)
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PT Bumi Serpong Damai Tbk (BSDE)
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PT Dharma Satya Nusantara Tbk (DSNG)
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PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO)
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PT Midi Utama Indonesia Tbk (MIDI)
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PT Mitra Keluarga Karyasehat Tbk (MIKA)
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PT MNC Digital Entertainment Tbk (MSIN)
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PT Pabrik Kertas Tjiwi Kimia Tbk (TKIM)
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PT Pacific Strategic Financial Tbk (APIC)
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PT Sawit Sumbermas Sarana Tbk (SSMS)
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PT Triputra Agro Persada Tbk (TAPG)
All these announced changes by MSCI are scheduled to take effect at the close of trading on May 29, 2026.
Summary
The Indonesian Financial Services Authority (OJK) announced that Indonesian stock valuations are currently attractive and affordable, with the average Price-to-Earnings Ratio (PER) at 16 times, lower than regional averages. This coincides with the Jakarta Composite Index (IHSG) remaining significantly below its All-Time High achieved in early 2026. OJK views this market condition as a compelling opportunity for investors, advising a selective approach to stock picking for long-term growth.
On May 13, 2026, the IHSG experienced notable pressure, which OJK attributed to a short-term reaction from MSCI’s rebalancing announcement. MSCI’s May 2026 global index review revealed the removal of six Indonesian stocks from its Global Standard Index and thirteen from its Global Small Cap Indexes. These changes are scheduled to take effect at the close of trading on May 29, 2026.