Jakarta. Finance Minister Purbaya Yudhi Sadewa on Thursday criticized the Indonesia Stock Exchange (IDX) for not doing enough to curb speculative trading, saying such activity could expose retail investors to higher risks.

Speaking at a dialogue with capital market stakeholders in Jakarta, Purbaya said the government would not extend fiscal incentives to the capital market industry until the exchange improves market discipline and reins in excessive speculation.

The event was attended by Financial Services Authority (OJK) Chairman Mahendra Siregar, Finance Ministry officials, and representatives from Self-Regulatory Organizations (SROs).

“The IDX asked for incentives, but I said not yet. I’ll give them once they fix investor behavior in the market. The speculative players must be controlled first so that small investors are protected,” Purbaya told reporters at the IDX headquarters.

The IDX has introduced several measures to address excessive speculation, including the Unusual Market Activity (UMA) and Full Call Auction (FCA) mechanisms. The UMA system alerts the public when abnormal price movements occur, prompting issuers to clarify whether corporate actions justify the volatility. Meanwhile, the FCA system --applied to stocks with extreme fluctuations or low liquidity-- temporarily limits continuous trading to help stabilize prices and protect investors from sharp, speculative swings.

Purbaya said that the government’s economic agenda centers on strengthening Indonesia’s overall economic fundamentals rather than chasing short-term stock market performance. With stable growth, strong liquidity, and improving investor confidence, he said, stock prices would rise naturally without excessive government intervention.

“Our goal isn’t just to boost the capital market but to strengthen the national economy. If the economy is healthy, the stock market will follow. The JCI will keep rising, maybe even reach much higher levels in the next ten years. As I said earlier, JCI to the moon,” he said.

Purbaya also criticized weak oversight of trading activities that distort stock prices and fail to reflect companies’ true fundamentals. He warned that certain groups have been manipulating share prices for short-term profits, often at the expense of retail investors.

“There are still too many stocks being ‘fried (manipulated)’, soaring fast and then crashing again. Retail investors become victims. That’s what the IDX must fix first. The capital market shouldn’t just benefit a few,” he said.

Despite his criticism, Purbaya reaffirmed the government’s commitment to supporting capital market development through targeted fiscal policies, but only after the exchange and regulators strengthen governance and market integrity.

“If I can reform the tax office and clean it up, then the IDX should also be able to clean up investor behavior. Once that’s done, we can talk about incentives,” he said.

The minister’s remarks come as Indonesia’s stock market continues to soar. The Jakarta Composite Index (JCI) recently hit a record high of 8,100, up more than 7 percent this year, even as authorities warn that speculative trading could distort valuations.

Indonesia’s retail investor base has expanded rapidly, reaching around 13 million single investor IDs (SIDs) as of mid-2025, up from 9.5 million in 2022, according to OJK data. Retail investors now account for 50–60 percent of daily trading.

The government previously offered tax breaks to encourage initial public offerings (IPOs) during the pandemic recovery from 2021 to 2023. However, Purbaya made clear that any future fiscal incentives would depend on improvements in market discipline and investor protection.