JAKARTA - The Indonesian Issuers Association (AEI) considers the government's move to reform the capital market to be a positive signal for investors.
The Chairman of the AEI, Armand Wahyudi Hartono, emphasized that his party supports the government's steps to strengthen the market structure, increase credibility, and encourage the deepening of the Indonesian capital market on an ongoing basis.
Because, according to him, at this time it is indeed needed to have a commitment to improve the governance, transparency, and quality of the capital market.
"AEI fully supports the government's capital market reform agenda. From the issuer's perspective, we view this reform as an opportunity to strengthen market quality, as long as it is carried out with a proportional, dialogic, and long-term approach," said Armand in Jakarta, quoted by Antara, Sunday, February 1.
When viewed from the perspective of issuers, he views the steps taken by the government need to be carried out with a more measured, inclusive approach, and consider the readiness of the business world.
Therefore, the association in principle supports the direction of reform aimed at improving market quality.
Some of the reforms in question are strengthening free float, ownership transparency, and deepening liquidity.
This is a prerequisite for the Indonesian capital market to be more credible and competitive in the global arena.
Furthermore, Armand emphasized that capital market reforms need to be carried out by considering the level of readiness of diverse companies.
According to him, a gradual approach, accompanied by adequate transition periods and policy flexibility, is important so that the adjustment process can run smoothly without disrupting market stability.
In addition, reforms are expected not only to add compliance obligations, but also to present incentives that encourage improvements in governance quality and openness.
"AEI is ready to become a strategic partner and ready to support the government and regulators in ensuring that policies are effective and in line with the actual conditions of issuers," said the Chairman of AEI.
There are several government policies to respond to the turmoil in the Indonesian stock exchange.
A number of these policies include the first, accelerating the increase in ownership transparency in the capital market.
Second, accelerating the demutualization of the Indonesia Stock Exchange to reduce conflicts of interest between board members and exchange participants in accordance with the P2SK Law.
Third, the minimum increase in free float of issuers from 7.5 percent to 15 percent.
Fourth, the increase in the investment limit of pension and insurance funds to the JCI from 8 percent to 20 percent.
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