JCI Falls and OJK Officials Resign, Commission XI DPR Suspects There are Structural Problems

JAKARTA - Deputy Chairman of Commission XI of the Indonesian House of Representatives, M. Hanif Dhakiri, emphasized that the plunge in the Composite Stock Price Index (IHSG) which occurred on January 28-29 was a serious alarm for the national financial sector. According to him, this condition reflects the existence of structural problems in the Indonesian capital market until a number of senior officials of the Financial Services Authority (OJK) resigned en masse.

"If it's related to our stock market, we do have structural problems that must be corrected. When yesterday it had fallen several times and was even threatened to be downgraded by MSCI, of course this is a problem," said Hanif in his statement, Saturday, January 31.

Hanif said that the problems in the financial sector and the capital market not only came from external factors, but were also influenced by domestic dynamics.

With the resignation of OJK officials and the collapse of the JCI, Hanif asked OJK to immediately carry out a thorough repair starting from the function of supervising and regulating the capital market. According to him, strengthening governance is the key to improving the quality of the Indonesian capital market in the future.

"Therefore, we ask OJK to really carry out good supervision and regulation, to ensure the quality of the Indonesian capital market becomes better," said the PKB legislator.

Hanif also emphasized that improvement could not be done in a partial manner, but must touch all aspects of capital market governance. He assessed that the challenges faced by financial authorities were increasingly complex, requiring firm and credible policy measures.

"Therefore, the work and challenges faced by OJK to really be able to regulate and control our capital market must be encouraged to be better," he said.

Hanif added that currently the DPR is still monitoring the transition process in the OJK and BEI bodies so that there is no policy vacuum that has the potential to worsen market sentiment. Commission XI, he said, plans to immediately call the OJK to discuss the issue specifically.

"Maybe later we will meet with OJK, and we will discuss this issue in particular," concluded Hanif.