IDX: The Market Is Shaky Due To COVID-19, But Don't Panic Selling

President Director of the Indonesia Stock Exchange, Inarno Djajadi. (Photo: IDX)

JAKARTA - The last two days, the Indonesian stock market was shaken hard. How could it not, since yesterday to today, the Indonesia Stock Exchange had to suspend trading for 30 minutes (trading halt) twice because it collapsed by 5 percent.

The decline in the Indonesian stock market is none other than due to the impact of the corona virus or COVID-19 outbreak. Moreover, the World Health Organization (WHO) announced that the corona virus has become a pandemic.

The Composite Stock Price Index (IHSG) was also out of breath. IDX President Director Inarno appealed to investors to be wise in investing.

He wants investors to think realistically in the midst of most of the share prices that have experienced a very deep decline. "We here want investors to see the situation realistically. It's time to buy shares. Our ROE (Return On Equity) is very high, ”he told the media crew in Jakarta, Friday, March 13.

Inarno explained that not only the country's stock market, but almost all stock exchanges in neighboring countries also experienced the same thing. So, his party as the regulator has implemented several policies such as prohibiting shortselling and changing the auto rejection policy.

"This is so that at least the investor does not sell. Because if we look deeply, it would be a shame to sell it at this price. Investors must be rational, don't panic, we are not talking about crisis protocols, but we have calculations for it globally, "he said.

Inarno added that in the current situation, his party is coordinating with fellow regulators to take joint steps in suppressing the weakening of the capital market.

The Financial Services Authority (OJK) also asked investors not to panic. Chairman of the OJK Board of Commissioners Wimboh Santoso said the government is always on the market in safeguarding economic fundamentals

"An appeal to entrepreneurs who have portfolios in the capital market, there is no need to panic, which is good we do to reduce the minimal impact. We have clear and transparent protocols for both the OJK and the Stock Exchange," said Wimboh.

According to him, the cause of the decline in the JCI was more due to negative sentiment due to weakening movements in world capital markets.

"So if the cause of the decline in the index in the capital market is more due to negative sentiment. Capital markets around the world are also interrelated. If one goes down, it will widen everywhere, including Indonesia," he said.

He also continued, the government has announced the Fiscal and Non-Fiscal Stimulus program Volume II. This stimulus provides convenience to the real sector which is now being affected by the corona virus outbreak.

"So the tax stimulus that is issued (the impact) does not go directly to the capital market. But it is hoped that it can contribute to entrepreneurs, especially those affected, including investors in the capital market," he explained.