<![CDATA[Political shocks can be transmitted asymmetrically across firms, depending on their ownership structure, while aggregate indices, such as the Jakarta Composite Index (JCI), may mask divergent firm-level reactions. This study examines whether ownership type (State-Owned Enterprises (SOEs) versus private firms) moderates political risk transmission to stock returns and conditional volatility in the Indonesian equity market. Employing a quantitative event study with GARCH (1,1) volatility modeling, this study analyzes 46 firms across four political shocks in 2025 using a 2 x 2 framework (domestic vs. international shocks x ownership type). Results show that domestic political shocks generated significant positive CAR for SOEs (mean = 4.67%, t = 1.893, p = 0.036), consistent with mean-reversion. For international shocks, a significant episode x ownership interaction emerged (F = 16.425, p 0.001, ?² = 0.157), while the ownership main effect on CAR was not significant at the 5% level (p = 0.054). Although international ???? values were positive, the between-group difference was insignificant (p = 0.922), and the overall volatility model showed no ownership, shock-type, or interaction effects (F = 0.222, p = 0.881). These findings suggest that political risk in Indonesia is transmitted primarily through return direction rather than ownership-specific volatility amplification.]]>
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