Capital Market Investors Are Expected To Be Patient, Stock Trading Still At 09.00-15.00 Hours

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK), Wimboh Santoso, assessed that positive sentiment has begun on the capital market both in Indonesia and globally.

Wimboh said that the strengthening in the Indonesian capital market was due to the presence of domestic investors. He explained, particularly retail and non-resident investors who recorded a net buy of Rp1.5 trillion. Meanwhile, on the Government Securities (SBN) market until the end of July, there was net buying of Rp5.06 trillion.

Despite the strengthening, Wimboh assessed that high volatility is still occurring in the capital market, which can be seen in the Jakarta Composite Index (JCI) which was again under pressure to 5,006 at the beginning of August. Even though the index before the pandemic was at the level of 6,000.

Furthermore, Wimboh said, because of the high volatility, OJK will not normalize the trading rules on the Indonesia Stock Exchange (IDX). The reason is because the capital market has not fully recovered from the impact of COVID-19.

"So we provide a large space for the capital market to recover quickly. So that the volatility is not too big," he said, in a virtual press conference, Tuesday, August 4.

Wimboh said, OJK and IDX will continue to encourage the emergence of new issuers in the capital market, especially retail issuers. The goal is that the capital market has strong fundamentals. So that later it will have a strong base for the market.

Meanwhile, Chief Executive of OJK Capital Market Supervision, Hoesen, said that the authorities were still monitoring the development of a number of policies launched for the capital market industry during the pandemic.

"The policy will still be like this before while we are looking to the future, whether a new policy is needed or a return to normal," said Hoesen.

Hoesen said that several policies that would be taken in the future would be closely related to the development of the COVID-19 case in Indonesia.

For your information, in order to withstand the high volatility in the capital market due to COVID-19, OJK has issued a number of changes and relaxation of regulations ranging from changes in trading hours to lower auto reject limits.