In January 2026, key officials from Indonesia's Stock Exchange and Financial Services Authority resigned amid a market sell-off and governance concerns. Their departures, seen as accountability measures, followed a significant drop in the Jakarta Composite Index and were met with governmental commitments to capital market reforms aimed at restoring investor confidence.
The Indonesian IDX Composite Index plummeted nearly 6% in two days due to multiple factors, predominantly an MSCI warning about the market's transparency. Panic selling ensued, fueled by foreign investors and structural weaknesses in ownership and data integrity. Ongoing capital outflows and economic uncertainties exacerbate these vulnerabilities, highlighting the need for reform and enhanced investor confidence.
The late January 2026 commodities trade highlighted how liquidity shapes prices during market stress. Gold's rapid fluctuation from $5,500 to $5,000 was spurred by macroeconomic factors and equity market corrections, prompting forced selling. Despite this volatility, a stable outlook persists around $5,300, reinforcing gold's long-term support at $5,000.
The Indonesia Composite Index (IHSG) fell over 7%, triggering a trading halt due to MSCI's warning on market transparency issues. This downturn erased recent gains from an all-time high of 9,134. Concerns over potential downgrades to "Frontier Market" status fueled panic selling, affecting multiple sectors and weakening the Rupiah.
On January 22, 2026, Indonesian President Prabowo Subianto addressed the World Economic Forum, emphasizing Indonesia's commitment to peace, stability, and global cooperation during uncertain times. He introduced his economic framework, "Prabowonomics," and highlighted national programs for social welfare, education, and anti-corruption, positioning Indonesia as a responsible global partner in economic development.
The Indonesia Stock Exchange (IDX) started 2026 positively, with the IHSG index rising over 1 percent, bolstered by investor confidence and favorable market conditions. The OJK outlined four strategic priorities for the year, focusing on market integrity, liquidity, institutional participation, and sustainable finance. Analyst forecasts predict the IHSG could reach 9,000–10,000 by year-end.
Indonesia plans to introduce export taxes on coal (1%–5%) and gold (7.5%–15%) starting in 2026 to enhance fiscal revenues and promote domestic processing. The coal tax responds to price fluctuations, while the gold tax aims to incentivize refined production. The policy supports industrial development and aims to stabilize resource governance amidst global challenges.
Airwallex has acquired a majority stake in PT Skye Sab Indonesia, gaining access to important payment licenses to enhance localized financial services. Following a USD 330 million funding round, this move positions Airwallex to support Indonesian SMEs in cross-border transactions while increasing competition in the fintech sector amid regulatory challenges.
Batu Investasi Indonesia increased its stake in PGJO from 61.96% to 82.30% by acquiring 162 million shares for Rp 180.5 billion. They initiated a Mandatory Tender Offer for the remaining shares at Rp 122 each, significantly below market price. PGJO is shifting focus from travel services to logistics, amidst concerns about profitability.
Indonesian construction firm WIKA has delayed interest and profit-sharing payments on various bonds and sukuk due to poor cash flow and declining new contracts, reflecting a broader industry downturn. The company plans meetings with bondholders to negotiate payment rescheduling, amid increasing credit risk and ongoing financial restructuring efforts.