JCI January 2023 Corruption Corrected, IDX Boss Opened His Voice

JAKARTA - President Director of the Indonesia Stock Exchange (IDX) Iman Rachman opened his voice on the correcting of the Composite Stock Price Index (JCI) in January 2023. Where, the JCI fell 0.16 percent year to date (ytd) in the first month of 2023.

According to Iman, the decline was caused by profit-taking (profit-making) actions of foreign investors. Profit-taking was carried out because investors saw the majority of stock exchanges that experienced corrections in 2022, starting to strengthen in January 2023, such as Hong Kong.

On the other hand, the IDX is one of the few exchanges that experienced growth in 2022, which grew by 4.1 percent ytd. Thus, investors moved their funds from the IDX to the exchange which recorded negative performance, as part of profit-taking.

"Many investors took profit from the IDX, and allocated their funds to exchanges which last year were quite large," explained Iman quoting Antara, Friday, February 3.

He continued, another reason was the reopening of economic activity in China after strict restrictions during the COVID-19 pandemic.

"This will have an impact on several indicators of the Indonesian economy," said Iman.

He ensured that the JCI's thin correction to its performance over the past month was not caused by the weakening of Indonesia's economic fundamentals.

"The reason for the down index, actually fundamentally in our 2023 economy, there is no change," said Iman.

In addition, he ensures that this weakening is temporary, and is optimistic that the Indonesian capital market will grow in line with the projected growth of Gross Domestic Product (GDP) in 2023.

On this occasion, his party targets the number of Indonesian capital market investors to reach 13.5 million Single Investor Identification (SID) by 2023, and 57 companies to be able to carry out IPOs.

In addition, his party also targets capital market capitalization in the country to reach Rp13,500 trillion by 2026.