The Polemic Of Morgan Stanley's Departure: Allegedly Due To Careless Law Enforcement, Many Investors Escape From The Indonesian Stock Market

Illustration. (Photo: Doc. Antara)

JAKARTA - The Indonesian stock market has again lost investment opportunities from abroad. The reason is, stock broker PT Morgan Stanley Sekuritas Indonesia announced the termination of securities trading intermediary (PPE) activities in Indonesia.

The cause of Morgan Stanley's departure has also become a byword in the Indonesian stock market. Because it is suspected to be due to law enforcement carried out by the Attorney General's Office which is suspected of being careless in handling the Jiwasraya-Asabri case.

The corporate action of Morgan Stanley Sekuritas Indonesia adds to the long list of stock brokers and international financial institutions that have stopped business in Indonesia. Responding to this, criminal law expert from Al-Azhar University (UAI), Suparji Ahmad regretted Morgan Stanley's policy.

Suparji said the rise of international financial institutions that had withdrawn from Indonesia should be a concern and a warning for President Jokowi. He said this should not have happened.

He also asked the Prosecutor's Office in the law enforcement process to pay attention to economic aspects.

"This must be the attention of President Jokowi. Especially in the midst of economic recovery efforts during this pandemic. Law enforcement must be carried out very carefully. Especially during a pandemic like now," said Suparji in his statement quoted on Sunday, May 30.

According to him, the prosecutor's office must be fair in the enforcement process but still pay attention to economic conditions in Indonesia so that it continues to grow.

"The steps that must be taken of course must be procedural and effective and efficient in the procedural," he said.

If law enforcement can be fair, transparent, and according to the rules, continued Suparji, then it can attract foreign and domestic investors to invest in Indonesia.

"So we need a guarantee of fair and transparent law enforcement to restore the confidence of investors to invest in Indonesia," he said.

In this regard, he also criticized the role of the Financial Services Authority (OJK) as an investigator in the stock market lately. He saw the performance of OJK so far is still minimal in protecting and supervising the stock market in Indonesia.

Supposedly if OJK could carry out its role, it would narrow the gap that would allow the Attorney General's Office to enter the stock exchange. Because it would cause a counterproductive hurricane.

"Protection of investors and the public needs to be improved. The OJK also has to work more carefully in accordance with the Act (Law) and consider economic aspects," he said.

Previously, stock broker PT Morgan Stanley Sekuritas Indonesia announced the termination of securities brokerage (PPE) activities in Indonesia.

"Morgan Stanley has decided to stop brokerage activities in Indonesia. We will continue to provide access to the Indonesian equity market to our global clients through collaboration with eligible local brokerage partners," Morgan Stanley said in a statement, Thursday, May 27 evening.

In addition to Morgan Stanley Sekuritas Indonesia, stock brokers and international financial institutions that have stopped doing business in Indonesia, among others, PT Merrill Lynch Sekuritas Indonesia and Citibank Indonesia, have also announced they are discontinuing business in Indonesia.

Then PT Deutsche Bank Sekuritas Indonesia and PT Nomura Sekuritas Indonesia have also officially announced they are reducing the stock trading business in Indonesia.