OJK Chairman Explains Five Focuses Of Capital Market Development Policy: Starting From Responding To The Impact Of COVID-19 To Increasing The Number Of Investors

Screenshot of OJK DK Chairman Mahendra Siregar. (Photo: Doc. Antara)

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar said his party has five policy focuses in dealing with various challenges in developing Indonesia's capital market in 2022.

The five focus policies are policies responding to the impact of COVID-19, developing MSMEs, increasing the number of emissions, products and other capital market instruments, increasing financial inclusion and the number of investors, and implementing sustainable finance.

"Observing the increasing number of cases of the COVID-19 pandemic in early 2022, the OJK has re-enacted and extended stimulus and relaxation policies for capital market industry players through the issuance of POJK No. 4/POJK.04/2022 and SEOJK No. 4/SEOJK.04/ 2022," said Mahendra at the commemoration of "45 Years of Reactivation of the Indonesian Capital Market" quoted by Antara, Wednesday, August 10.

Mahendra said that the OJK had issued various policies such as share buybacks or buybacks without a general meeting of shareholders (GMS), relaxation of the holding of a public company GMS through e-GMS, e-proxy, and e-voting, relaxation of the extension of the deadline for holding the GMS and submission of periodic reports of issuers or public companies, as well as the permission of public companies that experience certain financial conditions to restructure with additional capital without giving pre-emptive rights (HMETD).

"This policy has proven to be able to reduce volatility and encourage the growth of the Indonesian capital market," said Mahendra.

Furthermore, to support prospective small-medium scale issuers to be able to access capital through public offerings in the capital market, OJK previously issued POJK Number 53 and Number 54 of 2017. OJK noted that from 2020 to 2022, there were 16 small and medium scale issuers that had conducted an IPO with total emissions of Rp624 billion.

Then, in order to provide easy access for MSMEs to obtain funding through capital market instruments, previously OJK has also issued POJK Number 57/POJK.04/2021 as amended by POJK 16/POJK.04/2021 concerning Securities Crowdfunding (SCF).

"The current growth of the SCF industry is also quite encouraging. We note that to date the total fundraising through SCF has been successfully utilized by 264 MSME players with a total fund raised of IDR 564.49 billion from 119,714 investors through 11 SCF platforms," said Mahendra. .

Meanwhile, OJK's efforts to increase the number of issuers include continuing to organize socialization to prospective corporate issuers to take advantage of the capital market as an alternative financing.

In addition, OJK previously issued POJK No. 22/POJK.04/2021 regarding Multiple Voting Shares as a response to the development of the new economy, especially for companies that have innovation and high growth that continue to require funding to achieve the company's vision and mission.

"Meanwhile, to increase the variety of product choices that can be alternative investments, hedging mechanisms while increasing trading liquidity, OJK has also issued POJK Number 8/POJK.04/2021 concerning Structured Warrants traded on the Indonesia Stock Exchange," said Mahendra.

Although until August 8, 2022, the number of investors in the capital market sector continues to increase significantly, but when compared to Indonesia's population of 272.23 million, the number of capital market investors is only around 3.44 percent.

As a concrete step in OJK's efforts to expand financial inclusion, especially for retail investors, at the end of 2021 OJK has issued POJK No. 21/POJK.04/2021 concerning securities brokerage marketing partners to expand cooperation and take advantage of market interconnection and the digital ecosystem in order to increase the base investors. Since the issuance of the regulation in late 2021, there has been one new partner registered and four in the pipeline.

"In addition, in order to increase the number as well as the level of investor confidence, OJK will continue to work through socialization, optimizing market conduct supervision, strengthening regulations and utilizing digital transformation as well as improving investor protection infrastructure, while continuing to implement several programs such as the implementation of disgorgement, protection funds. investors, special notations, and supervisory actions to protect the interests of investors," said Mahendra.

Regarding the OJK policy in order to support the government in welcoming the 2022 Road to G20 Indonesia, especially related to the implementation of sustainable finance, Mahedra said OJK together with the Independent Regulatory Organization (SRO) are always ready to support the government in its efforts to fulfill the Paris Agreement, in this case the fulfillment of the NDC 29 percent or 40 percent through the implementation of a carbon exchange in the capital market. OJK and SRO will coordinate with relevant ministries and institutions to prepare regulations and infrastructure for the carbon exchange.

"In addition, to support the implementation of sustainable finance, in the future OJK will also continue to encourage the issuance of an ESG-oriented index, then issue guidelines for Investment Managers or MI in implementing sustainable finance, develop sustainable financial product innovations, and also encourage local verifiers. (environmental experts) who are internationally recognized in the issuance of green bonds, and also follow the latest developments in the implementation of sustainability reporting standards," said Mahendra.