Real Investor Growth of the Capital Market Needs to Be Strengthened to Prevent Manipulative Actions

JAKARTA - The Prasasti Center for Policy Studies think tank assesses that real investor growth in the capital market needs to be strengthened with actions to prevent speculative and manipulative practices, so that the momentum for investment growth remains healthy.

The Board of Trustees (Board of Trustees) of the Prasasti Center for Policy Studies (Prasasti) Ilya Avianti said the proliferation of new retail investors was a positive signal for the Indonesian capital market.

However, this growth also brings new challenges, one of which is an increase in the risk of manipulating stock prices for short-term profits or commonly referred to as "fried stock".

"A healthy market is a market that is based on the fundamental values of a company, not just on short-term price movements. The foundation of the capital market is fundamental, not just technical," he said, quoted by Antara.

He explained that the first step to prevent stock manipulation practices is to strengthen transparency. Issuers must be disciplined in presenting financial reports and material information in a timely and understandable manner.

"If the company's information is open and easy to read, the space to play with market perceptions will be narrower," he said.

Second, transaction supervision needs to be sharper. Unusual transaction patterns such as sudden price and volume spikes without corporate performance support must be detected and acted on quickly.

"Stock prices should reflect the value of a company, not just short-term tug-of-war results," said Ilya.

Third, said Ilya, investor education is the most important fortress. Investors need to be equipped with the ability to read financial statements, understand business models, and assess business prospects.

"If investors want to learn fundamentals, they are not easily trapped in gorengan stocks," said Ilya.

Ilya assessed that the role of market participants is also crucial. Brokers, analysts, and media, he said. need to encourage a culture of data-based investment and performance, not price sensation. Responsible recommendations will help shape a more mature market behavior.

The inscription recommends a number of efforts to suppress stock manipulation games such as combining transparency, supervision, education, and market participants' responsibility.

"This approach is important so that investor growth is not only quantitative, but also creates an optimal functioning capital market as a source of long-term financing," said Ilya.