BEI Full Call Auction Policy Protested By Investors

Photo: Special

JAKARTA - The Indonesia Stock Exchange (IDX) officially launched the Phase II Special Monitoring Board with the application of the full periodic call authorization (FCA) method or the full periodic auction on the Indonesian stock market, Monday, March 25.

This policy is expected to increase protection for investors by providing more transparency in stock price formation.

However, the implementation of the FCA around the clock of trading has raised concerns about potential market instability.

Moreover, the FCA policy implemented throughout trading time in Indonesia is different from practices in other countries that generally only use this method in pre-opening and pre-closing.

In other countries, the limited implementation of the FCA aims to reduce the negative impact on the market and provide time for investors to conduct better price assessments.

In Indonesia, the implementation of FCA throughout trading actually creates a risk of less transparent stock prices and increases the risk for investors.

This policy sparked unrest among investors. Several investors showed their dissatisfaction by sending bouquets of flowers as a form of satire to the IDX.

Two flower bouquets received by the IDX were in the spotlight. The first wreath was sent by Dayat Subagja & Family, while the second was sent by Devin Hutapea et al, with a clear message rejecting the FCA policy which was deemed unfavorable to the stock market.

The wreath arrived at 15.00, but was immediately moved by IDX security about five minutes later. This incident shows dissatisfaction among investors about the new policy.

"Yth. IDX leadership, please don't be conducive to the market," reads the wreath sent by Devin Hutapea et al.

Not only that, a stock investor from the IndoStocks Traders community who lives in Jakarta also opened a petition through Change.org. He was disturbed by the current Full Auction Board regulations.

According to him, the shares that are included in the full-auction board do not have a bid offer, so the situation becomes dark and difficult to predict.

Stock prices are suddenly formed through random closing, which makes the situation similar to gambling games rather than safe and predictable investments.

This petition reflects the concerns of many investors regarding the stability of the Indonesian stock market.

According to data from the Financial Services Authority (OJK), the number of stock investors in Indonesia in 2020 reached 3.87 million people.

The existence of the Full Auction Board regulation makes their investment stability threatened.

To date, the petition has received 12,500 signatures since it was posted two ago.

The signatories of the petition urge the Financial Services Authority (OJK) to abolish the Full Auction Board regulations in order to maintain stock market stability and protect investors.

" SIGN this petition if you agree that the Full Auction Board Regulation must be abolished!" read the invitation written in the petition.