JAKARTA - The Director of the Digital Economy Center of Economic and Law Studies (Celios) Nailul Huda revealed five important notes regarding the resignation of four officials of the Financial Services Authority (OJK) and the President Director of PT Bursa Efek Indonesia (BEI) simultaneously on Friday, January 30.
Huda said the first important note was a warning from Morgan Stanley Capital International (MSCI) which froze Indonesian issuers' shares in the MSCI index. One of them is from the free float side which is considered too low so that public ownership is low.
As a result, the ownership structure of shares in an issuer is not transparent. This is very related to gorengan shares. One of them is PT Abadi Lestari Indonesia, Tbk (RLCO) shares which rose up to 5,000 percent in less than a month.
"This increase is unnatural and will cause the stock to collapse faster because of this stock frying practice," Huda told VOI, Saturday, January 31.
Second, he continued, was the report by Goldman Sachs which lowered the investment rating of the Indonesian stock market in line with the MSCI statement.
As a result, many foreigners sell Indonesian shares which cause the Composite Stock Price Index (IHSG) to fall. Foreign investors no longer trust the Indonesian stock market amid global conditions that are also volatile.
"As a result of these two incidents, there was a trading halt for two consecutive days when the JCI fell by 8 percent," said Huda.
Furthermore, he said, the government also plans to increase the investment limit for the stock market for pension funds (dapen) and insurance companies from 8 percent to 20 percent.
"Although Purbaya emphasized that it was only in LQ45 shares, there was still concern about the case of default due to a loss-making investment," added Huda.
Huda said, Indonesia has faced various cases that have occurred in the past where public funds are used for gorengan stocks.
"Is the Purbaya restriction strong? Toh Purbaya also banned the transfer of Rp200 trillion to SBN yesterday, but it still flows there," he said.
Huda assessed that the government's plan was finally responded to negatively by OJK officials who resigned after they held a meeting with the executive.
"This step back is a proactive step and unwillingness to carry out the government's plan. The government's intervention is too deep to undermine the credibility of the stock market itself," he explained.
In fact, he said, the government as an executive agency also failed to improve the fundamentals of the economy.
The business world is still hit by a storm, purchasing power is still weak, and the threat of layoffs is increasing.
The government as an executive agency should improve these fundamental conditions rather than interfering too deeply in the capital market.
"Or this is Purbaya's strategy, which is known to always boast that the JCI has increased in the era of Purbaya serving as Minister of Finance, but there is no achievement in the real sector," said Huda.
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)
