JAKARTA - Finance Minister Purbaya Yudhi Sadewa assessed that the decline in the JCI was triggered by MSCI's report on market transparency and gorengan stock practices. He called the market's reaction excessive and this condition is only a "momentary shock".
"This is only the first report. There is still time until May. OJK will settle everything before May," said Purbaya at the Palace, Wednesday, January 28.
MSCI or Morgan Stanley Capital International is an institution that provides global stock indices that are a reference for international investors in placing funds. MSCI's assessment of market transparency, stock liquidity, and foreign investor access often affects capital flows to a country.
MSCI previously suspended changes to Indonesian stocks in its index because the shareholding was considered too concentrated and market access was limited. MSCI also froze the addition of shares and the increase in the weight of Indonesian stocks. At the same time, the IDX implemented a trading halt after the JCI fell 8 percent to 8,261.7.
Purbaya said the company would meet the MSCI criteria. He assessed that this moment was actually an opportunity because the market was too high before.
"If the economic fundamentals improve, the index automatically goes up," he said.
He emphasized that fiscal, monetary, and investment climate policies are now more in sync with BI. The money base is said to grow as expected. Purbaya also rotated 33-34 Customs officials.
"I will shift those who are not performing. We need a new spirit," he said. The rotation was carried out in Tanjung Priok, Batam, Semarang, Surabaya, and Bali.
He stated that tax and tax improvements were carried out without raising tariffs. K/L spending was encouraged in a timely manner. Investment debottlenecking was also expanded. "The economy can grow 6 percent this year," he said.
Purbaya estimates that the JCI will begin to recover next week. If the improvement in the capital market is slow, he states that he is ready to step down as Chairman of the KSSK to encourage acceleration of coordination with the OJK and BEI.
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