JAKARTA: Authorities from the Financial Services Authority (OJK), state asset fund Danantara and the House of Representatives, have visited the Indonesia Stock Exchange (IDX) office in South Jakarta in an effort to restore investor confidence amid the stock market plunge.
The benchmark index was down 1.85% on Monday and plunged again by more than 3% in the morning trading session on Tuesday.
“We have discussed how to boost global investor confidence, as well as how to maintain the growth of retail investors,” House Deputy Speaker Sufmi Dasco Ahmad said following a meeting with IDX officials.
“With our current fundamentals, I believe we can become stronger.”
He was accompanied by OJK head Friderica Widyasari Dewi, Danantara chief executive officer Rosan Roeslani and Danantara chief operating officer Dony Oskaria, during the visit.
Dasco praised the authorities’ efforts to implement the stock market reform, which was previously introduced to address transparency concerns raised by the Morgan Stanley Capital International (MSCI) global stock index in January.
OJK’s Friderica also noted that the recent decline in the stock market had reflected part of the “logical consequences” from the authorities’ stock market reform.
Domestic sentiment following MSCI’s rebalancing decision on May 12 has continued to weigh on the market after trading resumed from last week’s two-day holiday break. However, Friderica said that the decline was “still relatively moderate”.
Friderica added that the plunging IDX Composite index remained consistent with global and regional bourses’ weakening performance due to the US-Israeli war on Iran, as well as expectations of tightening global monetary policy.
“Many other bourses recorded steeper declines and some with only slight increases today,” she said.
The IDX Composite index’s movement was also considered in line with benchmark indices like MSCI, as well as major subindexes such as LQ45, IDX30 and IDX80. — The Jakarta Post/ANN
