OJK Officials and BEI CEO Resign, Indef Warns of Stock Volatility Risk
For information, the Chairman of the OJK Commissioner Board Mahendra Siregar; Head of Capital Market, Derivatives Finance, and Carbon Exchange Supervisory Executive (KE PMDK) Inarno Djajadi; Deputy Commissioner for Issuers, Securities Transactions, Special Inspections, Derivatives Finance, and Carbon Exchange (DKTK) I. B. Aditya Jayaantara, and President Director of PT Bursa Efek Indonesia (BEI) Iman Rachman officially resigned from their respective positions on Friday, January 30.
He stated that until now there has been no official fact or statement that can conclude that the resignation of a number of OJK officials was due to direct pressure from the government or Danantara.
However, he added that the resignation of several key figures at the same time was considered reasonable to raise questions in the market.
"Until now, there has been no official fact or statement that can conclude that the resignation of a number of OJK officials occurred due to direct pressure from the government or Danantara. However, it must be admitted that the simultaneous resignation of several key figures naturally raises questions in the market," he told VOI, Friday, January 30.
According to him, the main issue is not merely the correctness or not of intervention, but concerns the perception of the independence of supervisory institutions in the midst of the increasingly large role of the state in the financial sector.
He explained that in an economic perspective, governance issues like this are very sensitive because they are closely related to trust, not just formal procedures.
From the market side, Rizal explained that the impact that is felt the fastest is usually reflected in the sentiment and volatility of the Composite Stock Price Index (IHSG), especially in banking and financial sector stocks.
"From the market side, the impact that is felt the fastest is usually on the sentiment and volatility of the JCI, especially banking and financial sector stocks," he explained.
According to him, investors tend to be restrained or demand a higher risk premium when there is uncertainty at the regulator level.
He added that if the process of filling positions can take place quickly, transparently, and filled by credible and independent figures, pressure on the market is expected to be temporary.
"But if there is an impression that the OJK's supervisory function is weakened or too close to short-term policy interests, then the impact could be deeper and medium-term for investor confidence," he said.