Indonesia’s Financial Services Authority (OJK) has published its October supervisory review, assessing the financial sector as stable despite substantial capital market pressure. The Jakarta Composite Index closed October at 5,057.05, down 16.7% during the month and 41.52% since the start of 2026. Foreign investors sold a net IDR 16.88 trillion in equities amid global uncertainty and MSCI’s consultation on Indonesia’s market classification. Banking indicators remained stronger. September lending grew 13.26% annually, with a gross nonperforming loan ratio of 2.07% and a capital adequacy ratio of 24.30%. The review provides further detail on continuing market safeguards and integrity reforms, rather than announcing a new stabilization package. October’s reduction in the lower automatic rejection threshold from 15% to 7% applies through Dec. 31, 2026, while previously announced permission for share buybacks without shareholder approval runs through June 30, 2027. The High Shareholding Concentration committee now includes five independent external members. OJK is also urging the Indonesia Stock Exchange to exclude shares with high ownership concentration from the Jakarta Composite Index and strengthen detection of unusual and coordinated trading. Previously imposed fines totaling IDR 2.1 trillion concerning DSSA share trading and the BREN and CUAN initial public offerings were paid in full in October. Further sanctions imposed on Nov. 4 include an order to return IDR 5.07 billion in unlawfully obtained gains in the PANR trading case and IDR 2.47 billion in fines in the BOGA case. Beyond capital markets, newly issued insurance solvency rules address minimum solvency ratios, available capital and Own Risk and Solvency Assessment, aligning the framework with PSAK 117 and the international Insurance Capital Standard. Separate financial reporting integrity rules cover insurers, guarantee institutions and pension funds. Amendments to nonbank supervision rules revise quantitative criteria for intensive and special supervision and the duration of special supervision. OJK also issued its 2026–2030 banking roadmap and practical guidance on banking ethics and risk culture.
Indonesia's Financial Services Authority reports stable financial sector despite 16.7% October stock market fall
Indonesia’s Financial Services Authority reports that the financial sector remained stable despite a 16.7% October stock market decline. Its review updates continuing ownership concentration reforms and confirms payment of IDR 2.1 trillion in earlier capital market fines, alongside further enforcement action. Newly issued rules also address insurer solvency, financial reporting integrity and nonbank supervision.