JAKARTA - Reliance Securities Tbk (RELI) Director Reza Priyambada assessed that the movement of the rupiah exchange rate and the Composite Stock Price Index (IHSG) in the future will be more influenced by macroeconomic sentiment, fundamental conditions, and the performance and news of each issuer, not solely by the change of the exchange's board of directors.
"I think that the influence on the rupiah and the JCI will depend on macro sentiments and fundamentals as well as news from issuers, not because the exchange's board of directors retreats or not," he told VOI, Friday, January 30.
He added that Iman Rachman's resignation from the position of President Director of PT Bursa Efek Indonesia (BEI) was a surprising step, but could be understood as a form of personal responsibility.
According to Reza, the decision was likely taken due to the failure to correct a number of issuers, especially regarding the free float provision, which then triggered selling pressure from market participants.
"Maybe he feels that he has failed to fix the issuer related to free float so that he gets pressure from selling actions of market participants so that he has decided to resign," he explained.
Regarding Iman Rachman's resignation, Reza said he did not know the details of the background of the decision, whether it was due to certain pressure or purely as a form of accountability and integrity.
He added that the resignation of the exchange's leadership would not necessarily change the views of global rating agencies such as MSCI.
"Including the replacement of Mr. Iman, we also don't know the details, whether there are certain pressures or this is purely a form of accountability and integrity. What if he resigns and MSCI will change its view? It's not either," he said.
Reza also conveyed that he did not question whether an issuer entered or exited foreign indices such as MSCI or FTSE.
He emphasized that investment decisions should be based on confidence and assessment of the issuer's fundamentals, not solely on the assessment of foreign institutions.
"This is the Indonesian Capital Market, not the Foreign Capital Market. That there are foreign investors in it, yes. We do not deny this. But, it does not mean that they are the ones who determine where the Indonesian Capital Market will go," he said.
However, Reza emphasized that regardless of the resignation of the exchange's leadership, the most important thing is to make the Indonesian capital market more transparent, efficient, effective, and ethical.
"So it becomes a comfortable place for market participants to invest and does not make it an event like a casino to seek personal profit. In fact, it is an event to use to attract nubie to invest without direction," he said.
He assessed that the recent events should be used as an opportunity for improvement, especially to deepen the penetration of the capital market among domestic investors.
According to him, increasing education and participation of local investors is very important so that the Indonesian capital market has a strong buffer when foreign funds flow out.
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