In January 2026, the Indonesian equity market experienced heightened volatility and ended the month in correction territory, as the early-year rally failed to sustain. By the end of January, the Jakarta Composite Index (JCI) had declined by 3.67% year-to-date (YTD), driven by profit-taking activities, external pressures, and a more defensive stance from foreign investors. Market volatility intensified amid MSCI’s scrutiny of Indonesia’s capital market investability, particularly regarding share ownership transparency, liquidity, and free float structure, which prompted global investors to adjust their portfolios. Amid these market pressures, the banking sector demonstrated relative resilience. Although major banking stocks remained under correction, the industry’s solid fundamentals continued to attract selective interest from domestic investors.
