Active Intermediaries in the Capital Market, BEI Implements 'Cooling Down' Mechanism for Trading

JAKARTA - The Financial Services Authority (OJK) said that Danantara's support for capital market reforms includes investment activities on the exchange. Chairman of the OJK Commission Board Mahendra Siregar said that this step has already begun and will be improved.

"The support is indeed a possibility and has indeed begun to be carried out to also actively invest in the capital market," said Mahendra in a statement with the Commissioner and Board of Directors of PT BEI in Jakarta, Thursday, January 29.

Danantara is a state-owned investment management institution led by Rosan Roeslani. Mahendra considers the participation of institutional investors such as Danantara is important to deepen the market and increase liquidity, or the availability of tradable shares without disturbing prices.

On the exchange side, Commissioner of the Indonesia Stock Exchange (IDX) Inarno Djajadi emphasized that the IDX would continue to implement various safety devices so that investors would not panic. He said that mechanisms such as auto rejection (daily price increase or decrease limit), auto halt (temporary suspension of trading when the market falls), and ARB or stock price limit still apply. The buyback policy, namely the repurchase of shares by the company, can also still be carried out according to the rules.

President Director of the Indonesia Stock Exchange (IDX) Iman Rahman added that communication with foreign investors was the focus. The IDX, he said, discussed directly with global investors to explain the concrete steps of the OJK and market regulators so that the information circulating was not just speculation.

Chairman of the OJK Commission Board Mahendra Siregar said the main focus remained on transparency reform and strengthening market structures, while institutional investor support was considered as part of strengthening the liquidity of the Indonesian capital market.