Prabowo Expresses Fury as Indonesian Stock Market Faces Integrity Concerns
Indonesia’s President Prabowo Subianto is reportedly deeply concerned following a recent downturn in the Composite Stock Price Index (IHSG), sparking a government commitment to heightened market oversight and a defense of national economic honor.
The recent volatility in the Indonesian stock market has triggered a strong response from the nation’s leadership, with President Prabowo Subianto expressing significant displeasure over the decline. The concerns center around the integrity of the capital market and the potential impact on both domestic and international investors, particularly retail investors.
Government Vows Strict Oversight
A senior official within the Indonesian government, speaking at the ASEAN Climate Forum in Jakarta on Wednesday, February 11, 2026, emphasized the critical importance of trust and credibility in maintaining a healthy market. The official stated that the government will be closely monitoring key figures in the capital market and will take decisive action to uphold its integrity.
“We all know what happened last week, right? Morgan Stanley, the stock market crash, and several people were asked to resign,” the official noted, referencing recent events that have fueled anxieties about market stability.
The government’s commitment extends beyond mere observation. The official underscored that maintaining the honor of the Republic of Indonesia is paramount for President Prabowo, and as such, supervision will be conducted with the utmost rigor.
Anomalous Valuations Raise Red Flags
A key area of concern highlighted by the official was the presence of companies exhibiting price-to-earnings (PE) ratios that are considered drastically inflated. “A PE ratio reaching hundreds to thousands of times is a strong indication that there is a serious problem in the market,” the official explained.
These anomalous valuations are being viewed as potential “red flags,” signaling the possibility of underlying issues and potential market manipulation. The official stressed the need for regulators and self-regulatory organizations (SROs) to remain vigilant and proactively address these irregularities.
Protecting Investors and Maintaining Credibility
The potential for fraud in the market was also emphasized, with the official asserting that robust regulation is essential to protect investors from deceptive practices. This commitment extends to the burgeoning carbon market as well, with the government determined to ensure its integrity through consistent supervision.
“President Prabowo is very angry. He is angry about what happened last week, especially because our country’s honor is at stake,” the official stated, emphasizing the gravity of the situation. The impact on retail investors, many of whom have reportedly suffered losses, is a particularly pressing concern.
The official clarified that the government’s response is not intended as a threat, but rather as a firm commitment to safeguarding the integrity of the OJK (Financial Services Authority) and the BEI (Indonesia Stock Exchange). Ultimately, the reputation of regulators, market participants, and the Indonesian state itself are all at risk.
