JAKARTA - OJK acknowledges that major improvements in the Indonesian capital market can trigger short-term pressure and adjustments on the stock exchange. However, this step is considered necessary so that the Indonesian capital market is healthier and trusted by global investors.
OJK Chairman Friderica Widyasari Dewi said the changes made at this time are part of the improvement of market structure after emerging from the spotlight of global investors and MSCI evaluations since the end of January.
"This is a temporary impact of the improvements we are making," said Friderica at the Presidential Palace Complex, Jakarta, Tuesday, May 5.
MSCI is a global index compiler that is often used as a reference for foreign investors in placing funds in the stock market.
According to Friderica, one of the concerns of global investors is related to the transparency of the Indonesian capital market. Therefore, OJK has started to open 1 percent shareholder data, expanding the classification of investor data from nine to 39 categories, to opening data on ultimate beneficial owners or ultimate beneficial owners.
Changes were also made to the free float rule, namely the number of shares that are actually circulating in the public and can be traded. OJK encourages free float above 15 percent so that market liquidity is healthier.
Friderica said the improvement could lead to adjustments in the market, including the potential for changes in the composition of shares in the MSCI index in the next few months.
Even so, OJK considers this condition to be temporary. According to Frederica, the current stock market movement actually began to reflect the company's fundamentals.
He said the movement of the Composite Stock Price Index or JCI is now starting to be in line with major indices such as LQ45 and IDX30.
"Now the movement of stocks is more to the fundamentals," he said.
In the midst of global pressure and foreign funds flowing out, OJK also continues to encourage market deepening through increasing domestic investors so that the Indonesian stock market is not easily shaken by foreign sentiments.
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