JAKARTA - UPNV economist and Public Policy Expert, Achmad Nur Hidayat, also commented on the resignation of the Indonesian Stock Exchange (IDX) and Financial Services Authority (OJK) on Friday, January 30.
According to Achmad, what needs to be highlighted is not only related to who will replace it when meeting with MSCI next week but related to investor confidence.
"The problem is not just who is stepping down or who is replacing. The problem is how the country ensures that the trust machine is back in operation, quickly, calmly, and convincingly, both for domestic retail investors and global institutional investors who assess Indonesia with the eyes of governance," he said in a statement to the media, Saturday, January 31.
He added, in the capital market, positions at the OJK and BEI are not only organizational seats but symbols that rules are enforced, the game is fair, and risks are managed with discipline.
"When the chair is empty, the market reads not only an administrative vacancy, but also the potential for confusion about policy direction," he continued.
He also likened the Indonesian capital market to a large ship with millions of retail passengers, thousands of issuers, hundreds of intermediaries, and global capital flows that are sensitive to small signals.
"In a situation of high waves, what is needed is not a captain who is good at giving speeches, but a captain who has a reputation for maintaining discipline. There are three core qualities that I think cannot be negotiated," he continued.
First, Achmad said that integrity could be audited publicly, not just claims and a track record of free conflict of interest with certain market actors, and the courage to enforce rules without discrimination.
"Second, adequate technological capacity, because the crisis of trust cannot be patched with rhetoric," said Achmad.
Third, he said the ability to communicate a calm, consistent, and timely crisis, because in the capital market, silence for too long is often read as no control.
"Indonesia itself has actually put the right narrative at the beginning of this year. OJK emphasizes the focus on integrity, liquidity, and strengthening the investor base of institutions. That's the right direction," he said.
Meanwhile, regarding the meeting with MSCI next Monday, he said that the ham was not a forum for empty talk. He likened this meeting to a vehicle eligibility check before entering the global toll road.
"If MSCI assesses that there are 'fundamental investability issues', then what Indonesia must bring is proof that improvements are not just plans, but have become a system of work," he explained.
For this reason, he assessed that Indonesia needed to emphasize the principle of predictable policies. However, global investors do not demand policies that are always pleasant, but demand consistent policies, based on rules, and have a clear transition period.
Furthermore, in the report on the government's response, it was mentioned that steps to encourage liquidity, for example, increasing the investment limit of certain institutions to shares, as well as plans to increase free float.
"This policy message will be stronger if it is conveyed not as a panic response, but as part of the roadmap for governance and market deepening that has been prepared," said Achmad.
According to him, if Indonesia wants to convince MSCI, what is needed is an explanation of what is being investigated, how the investigation is carried out, and how sanctions are imposed when there is a violation.
"Global public opinion judges not from the promise of "being firm", but from the predictable pattern of action," he explained.
Finally, regarding the envoy who attended the meeting, according to him, in a situation where many leaders resigned, sending the wrong envoy can create the impression that Indonesia does not have an authority that really holds the helm.
In fact, he said, MSCI needs a counterpart that has the authority and technical capacity, not just a ceremonial representative.
"Ideally, those present are active officials who formally have a mandate to oversee the capital market and the leadership of a self-regulatory organization that is still fully functioning, accompanied by technical officials who master the details. The goal is simple: ensure that discussions do not stop at the narrative, but touch deliverables and timelines," he said.
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