Four OJK Focuses Related To The Capital Market In 2020

OJK Chairman Wimboh Santoso together with President Joko Widodo. (Photo: Indonesia Stock Exchange)

JAKARTA - The Financial Services Authority will continue to build collaborations with various parties to create a resilient, efficient, transparent and credible capital market industry through various strategic policies for capital market development.

Chairman of the OJK Board of Commissioners, Wimboh Santoso, while delivering remarks at the opening of stock trading in 2020 at the Indonesia Stock Exchange, Thursday, January 2, stated that there are four policy focuses in the capital market. First, improving the implementation of better governance that will strengthen the confidence of investors and market players in the Indonesian capital market.

Second, increasing the role of the capital market in financing various projects in strategic government sectors, including by providing various incentives to issuers engaged in developing strategic government sectors and promoting environmentally friendly aspects.

Third, increasing the number of Micro, Small and Medium Enterprises (MSMEs) issuers, through simplifying public offering regulations and transparency obligations for MSMEs as well as increasing the role of regional securities companies, and fourth, building a deeper capital market ecosystem.

The development of the capital market ecosystem is carried out by, among other things, continuing the development of central counterparty clearing (CCP), expanding capital market instruments, which are conventional, sharia and environmentally sound, such as project crowdfunding, regional bonds, blended finance and project bonds.

President Jokowi, who was also present at the opening of stock trading on the IDX, appreciated the performance of the Indonesian stock market which continues to increase from year to year so that investor confidence must be maintained, especially from harmful price manipulation practices.

"Protection for investors must be increased, fraud must be suppressed, create a transparent and valid investment system. We have to build a good ecosystem because it is important to maintain people's trust, ”said the President.

The President also requested that 2020 be a momentum for the OJK and IDX as a year to clean up the capital market from stock exchange manipulators.

OJK data noted that in 2019, even though Indonesia's economy was affected by a global economic slowdown which resulted in weakening investment and expansion in the real sector, Indonesia's economic growth could still grow above 5 percent with a controlled inflation rate and maintained stability in the financial services sector.

In the capital market, the JCI in 2019 still recorded positive growth, namely 1.70 percent, closing at the level of 6,299.5. Foreign investors' net buy in the stock market has increased significantly, from recording a net sell of IDR 50.7 trillion in 2018 to a net buy of IDR 49.2 trillion in 2019.

The activity of raising funds through public offerings on the capital market in 2019 was also quite good, amounting to Rp166.8 trillion with 60 new issuers and 3 equity crowdfunding, or an increase compared to the 2018 position of Rp166.1 trillion with 62 new issuers.