Indonesian Stocks Recover as Regulators Announce Free-Float Requirements Hike and Danantara Secures Expensive Loan

Indonesian stocks experienced a significant turnaround on January 29, 2026, as the Jakarta Composite Index (JCI) recovered from losses following announcements by regulators regarding increased free-float requirements and the Indonesian sovereign wealth fund Danantara securing an expensive loan. The JCI had earlier dropped due to concerns over global economic conditions and geopolitical tensions. However, the Indonesian market took a positive turn after the Indonesian Financial Services Authority (OJK) announced plans to double the minimum free-float requirements.

The OJK's decision aimed to ensure that 25% of a company's shares are freely float, up from the previous 12.5%, to increase market liquidity and reduce volatility. This announcement came as a relief to investors and helped in regaining confidence in the Indonesian market. Furthermore, the Indonesian sovereign wealth fund Danantara's recent move to secure a $1 billion loan also contributed to the market's recovery.

According to sources familiar with the matter, Danantara paid more than double the interest rate for the loan compared to the patriot bonds it had issued earlier. The patriot bonds, which were sold at a discount, were aimed at raising funds for COVID-19 relief efforts and infrastructure projects. The high-interest loan, however, was taken to finance the acquisition of stakes in several Indonesian companies.

Elsewhere, the Federal Reserve held interest rates steady, with Chair Jerome Powell pointing to an improving US outlook as the labor market steadied. The central bank's decision was in line with analysts' expectations. The Fed's rate decision was accompanied by a massive day of tech earnings, with Meta and Microsoft in the US, and Samsung and SK Hynix in Asia, reporting their quarterly results.

In commodity markets, gold, copper, and silver hit all-time highs on a weaker dollar and rising geopolitical tensions. Meanwhile, in the Middle East and Africa, Saudi Arabia was ordering sweeping changes across its most ambitious projects, while African central banks were kicking off a busy month of interest-rate decisions.

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