Indonesia Stock Exchange affirms strong market fundamentals despite recent correction

Despite a recent market correction that saw the Composite Stock Price Index (IHSG) decline by 3-4 percent over two days, the Indonesia Stock Exchange (BEI) asserts that the fundamental strength of the capital market remains solid. The IHSG closed Thursday with a more limited decline of 1.70 percent, following a steeper fall earlier in the day. BEI's Acting President Director, Jeffrey Hendrik, highlighted the robust financial performance of listed companies. He noted that corporate earnings grew by over 21 percent by the end of 2025. Furthermore, in the first quarter of 2026, earnings for stocks within the LQ45 group saw nearly 30 percent growth, specifically 29.9 percent, compared to the same period last year. Hendrik also pointed out that approximately 80 percent of listed companies reported net profits in Q1 2026, the highest figure in the last five years. This strong corporate performance, he stated, provides a solid foundation for investor decisions. To bolster market confidence amidst the correction, BEI is implementing reforms focused on transparency, data granularity, and information on high shareholding concentration.