JAKARTA - Money market observer Ibrahim Assuaibi considers the resignation of PT Bursa Efek Indonesia (BEI) President Director Iman Rachman to be the right step and deserves appreciation in order to maintain market confidence in regulations in Indonesia.
According to Ibrahim, the decision was taken voluntarily as a form of leadership responsibility for serious problems that occurred in the capital market.
"I think it's good enough. What does it mean? That as the top leadership, when a problem occurs, this problem is so chronic, yes for me it is chronic, it has a policy that is quite extraordinary, resigning. Well, this resignation is not forced, but the desire of Mr. Iman Rahman's own heart, so what? So that this market can regain confidence in the regulations in Indonesia," he said in his statement, Friday, January 30.
"Now what Iman Rahman did, must make one appreciate, this indicates that the government, leaders in Indonesia are literate, and they already know that when a problem occurs, before it is issued, it is better to resign," he added.
Ibrahim explained that Iman Rachman's resignation was also related to the warning from the global index institution MSCI which had been delivered about two months ago.
"What caused Iman Rahman, the Director of the Indonesia Stock Exchange (to resign from his position), which in fact will have changes, changes in management, (but) one of them is the impact of MSCI which makes a warning, in fact the warning has been long enough, from two months ago," he explained.
He added that MSCI assessed that there was a mismatch between the fundamental conditions and the reports of a number of issuers listed on the IDX, which could potentially lower the rating of the Indonesian capital market.
"It appears to lower the rating, and it is considered that companies listed on this exchange do not correspond to reality, on paper they are good, but in reality there is overlap," he said.
According to him, this has an impact on the issuance of a number of Indonesian stocks from the MSCI index, which then triggered a decline in the Composite Stock Price Index (IHSG) by around 8 percent in several trading days as well as a temporary suspension.
"Well, this is what finally made MSCI issue quite good stocks in Indonesia, so this made the combined stock price index for three days experience a decline, even reaching 8 percent and there is a temporary suspense," he said.
He hopes that in the future, regulators, including the Financial Services Authority (OJK), can strengthen more credible policies and regulations so that the Indonesian capital market is again looked at by global investors, including MSCI.
Ibrahim also emphasized the importance of regulating speculative stocks and a strict review of companies that will be listed on the exchange, especially in terms of financial fundamentals, so that the professionalism of the Indonesian capital market can be maintained.
"Don't just usually burn money then fix it, the financial fundamentals then come in, what does it end up being? It becomes a goreng-gorengan stock," he said.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
