Already At Level 5,700, OJK Chairman Wimboh Santoso Is Optimistic That The JCI Will Return To 6,000

Chairman of the OJK together with the President of the Republic of Indonesia Joko Widodo (Jokowi). (Photo: Doc. OJK)

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Wimboh Santoso said the COVID-19 pandemic is putting pressure on the stock market. This pressure caused the Composite Stock Price Index (IHSG) to touch its lowest level at a level below 4,000 in March 2020.

This condition, said Wimboh, was responded quickly by the OJK by implementing a series of policies so that the index would not drop too deeply. These policies include trading halt for 30 minutes if trading is corrected 5 percent in a day. Not only that, OJK allows issuers to buy back shares (buyback) without a GMS.

"In March 2020, the index fell below 4,000. At that time we immediately took a policy to stimulate the economy, so that the issuer's fundamentals would be better, positive sentiment could come back," he said, in an event entitled "CEO Networking 2020: Building Resilience to Economic Recovery" , Tuesday, November 24.

Furthermore, Wimboh said he was optimistic that the domestic stock market would slowly recover and the JCI could return to the psychological level of 6,000. This is partly because of this policy.

"The last figure yesterday, November 23, our index was 5,652 and we hope it could reach 6,000. Because before it fell because of COVID, it was above 6,000," he explained.

Currently, said Wimboh, the role of new issuers that enliven the capital market to raise funding has also contributed positively, including the role of domestic retail investors.

"Domestic investors support our efforts so that we do not really depend on portfolios from abroad. These are all good signs in the capital market, especially entrepreneurs. We have a very broad base of potential domestic retail investors," he said.

Wimboh said, there were several positive catalysts that had indicated an economic improvement as seen from improving economic activity in the United States and China.

Signs of starting to recover in the economy can also be seen from the Purchasing Manufacture Index (PMI) indicator for Indonesia, which increased in October from 47.2 to 47.8. So, said Wimboh, Indonesia could accelerate these improvements.

For information, today Tuesday November 24, the JCI managed to gain 0.85 percent or 48.27 points to the level of 5,701.03. The strengthening of the JCI was driven by the strengthening of 291 stocks, while the shares that fell were 171, and those that were stagnant or did not move from the opening level were 171 stocks.