In late January 2026, Indonesia’s Composite Index (IHSG) experienced a sharp decline, driven by global economic uncertainty, large-scale foreign capital outflows, and negative market sentiment following MSCI’s index adjustments. This downturn led to falling stock prices, reduced market liquidity, and declining investor confidence, raising serious concerns over financial market stability and broader economic impacts.
Previously, in September 2025, the Indonesian government, under Finance Minister Purbaya Yudhi Sadewa, implemented a large-scale liquidity injection policy by reallocating Rp200 trillion of state funds from Bank Indonesia into five major commercial banks, aiming to boost banking liquidity, revive credit flows, and support economic growth