Government Denies Palace Pressure Behind the Resignation of the CEO of the Indonesia Stock Exchange

JAKARTA - The government has denied the issue of pressure from the Presidential Palace behind the resignation of the President Director of the Indonesia Stock Exchange (IDX), Iman Rachman. The resignation of the head of the exchange authority was considered a personal decision and not a form of government intervention, including President Prabowo Subianto.

This was conveyed by the Minister of State Secretary (Mensesneg) Prasetyo Hadi. He emphasized that the government did not have the authority to interfere in the internal affairs of the IDX, including regarding the position of directors.

"It can't be, that's its own authority," said Prasetyo when met at Wisma Danantara, Jakarta, Friday, January 30.

The issue of Iman's resignation surfaced amid the domestic stock market's pressure in the last two days. This situation triggered speculation that the resignation of the CEO of the IDX was related to market dynamics and political pressure from the government.

However, Prasetyo emphasized that the main focus should not only be on the figure of the head of the IDX, but on strengthening the fundamentals of the market and corporate governance in the country.

"So, how does the country also regulate so that our companies are healthy, our companies are transparent, meet the rules as companies in other countries. Actually, one of the problems is that," he said.

Previously reported, the President Director of PT Bursa Efek Indonesia (BEI) Iman Rachman, officially resigned from his position. Iman said that the resignation was a form of responsibility for the market conditions that occurred in the last two days.

Even though the market conditions on Friday morning, January 30 began to improve, he emphasized that the decision was made for the good of the Indonesian capital market.

"That I as the President Director of the Indonesia Stock Exchange and as a form of my responsibility for what happened two days ago, I resign as President Director of the Indonesia Stock Exchange," he said in a press conference, Friday, January 30.

Iman hopes that this step will be the best for the capital market and can encourage improvements in the future.

"I believe that this is my form of responsibility and as the President Director of the Indonesia Stock Exchange. Hopefully our index which opened this morning will continue to improve in the following days," he said.

Regarding the administrative process, Iman explained that all resignation mechanisms will be carried out in accordance with the provisions of the company's articles of association.

For the time being, he continued, the IDX will appoint the Acting President Director in accordance with the applicable rules until the new definitive President Director is established.