JCI Drops, Market Needs Evidence: Legal Reform And Technocracy Are Key

Legal observer, Hardjuno Wiwoho. (Photo: Special)

JAKARTA - The Composite Stock Price Index (JCI) fell by 7 percent before being hit by halt trading, reflecting market panic over government fiscal policy.

The Nutrition Food Program (MBG) and Danantara, two ambitious programs that cost a fantastic budget, are considered a large fiscal burden that is not supported by strong technocratic management. Legal and development observer Hardjuno Wiwoho considered that the fall of the JCI was not just a reaction to aggressive state spending, but also a result of weakening the culture of technocratics and legal uncertainty.

The government actually prioritizes political actors in managing the strategic sector, instead of placing competent technocrats. An example is leadership elections in the Antara.

Meanwhile, the alleged major corruption in Pertamina has exacerbated market sentiment towards state governance, which is considered increasingly vulnerable to the interests of certain groups.

"The market needs certainty that this country can be managed properly. However, our political system actually gives birth to more pragmatic politicians than reliable technocrats. As a result, the policies taken tend to be populist and short-term oriented, not based on fiscal efficiency and sustainability," said Hardjuno, quoted on Wednesday, March 19.

This doctoral candidate for Law and Development at Airlangga University (Unair), this ongoing crisis of trust cannot be resolved simply by political promises or fiscal policy adjustments. The market requires concrete evidence that the government is serious in building clean and professional governance. One of the fastest and concrete ways to restore market confidence is to ratify the Asset Confiscation Law.

"This law is not just a legal instrument, but a signal for the market that the government is serious about fighting corruption and rebuilding the culture of technocracy. If corruptors' assets can be immediately confiscated and returned to the state, then the state will have more fiscal space without having to continue to seek debt or sacrifice other strategic sectors," he said.

So far, law enforcement against corruption still faces many obstacles, including a long legal process and the difficulty of confiscation of assets. Without effective legal devices, many assets resulting from corruption are still enjoyed by the perpetrators even though they have been sentenced.

As a result, the public sees the war against corruption as more of a political tool than a fundamental effort to improve the system. According to Hardjuno, restoring the credibility of technocracies in government is not just a matter of replacing officials, but also ensuring that every policy made has strong accountability.

If a strategic official is chosen not because of competence, then every policy taken tends to be problematic in implementation.

"We have seen this pattern repeatedly. A large program was launched, funds were disbursed, but the execution was bad because the leader was not someone who understood the sector. If a system like this continues, the JCI will continue to turmoil because the market sees this country as increasingly difficult to predict," he said.