(Jakarta, 1st) Indonesia's Financial Services Authority has said that it will crack down hard on stock market manipulation and accelerate financial reforms to restore confidence in Indonesia's asset markets.
The newly appointed acting chairman of the board of Indonesia's Financial Services Authority (OJK), Frederica, said at a press conference on Saturday night (Jan 31) that the authority will launch an investigation into allegations of pump and dump stock manipulation.
Senior officials at the OJK collectively resigned on Friday (Jan 30) due to consecutive days of heavy losses in Indonesia's stock market. Frederica was appointed as the acting chairman of the board on Saturday, effective immediately.
Indonesia’s Coordinating Minister for Economic Affairs, Airlangga, also attended Saturday night’s press conference. He said that President Prabowo has instructed the OJK, the Ministry of Finance, and the Stock Exchange to ensure the normal operation of financial markets. On behalf of Prabowo, he also conveyed the Indonesian government’s determination to create a transparent, fair, and world-class investment environment.
In addition to OJK leadership, Indonesia Stock Exchange CEO Iman also resigned on Friday to help restore market confidence. The Stock Exchange’s Director of Development, Jeffrey, said that the authorities have decided to appoint an acting CEO. The Exchange’s corporate secretary subsequently told reporters that a related announcement would be issued before trading resumes next week.
Index compiler MSCI on Tuesday (Jan 27) said that Indonesia's market lacked transparency in its shareholding structure, triggering turmoil in Indonesia’s stock market and the biggest two-day drop in nearly 30 years. Indonesia’s benchmark Jakarta Composite Index rebounded by as much as 2.2% in early Friday trading, but risk aversion across the Asia-Pacific region narrowed the gain to 1.2% by close.
Senior officials at the OJK collectively resigned on Friday (Jan 30) due to consecutive days of heavy losses in Indonesia's stock market. Frederica was appointed as the acting chairman of the board on Saturday, effective immediately.
Indonesia’s Coordinating Minister for Economic Affairs, Airlangga, also attended Saturday night’s press conference. He said that President Prabowo has instructed the OJK, the Ministry of Finance, and the Stock Exchange to ensure the normal operation of financial markets. On behalf of Prabowo, he also conveyed the Indonesian government’s determination to create a transparent, fair, and world-class investment environment.
In addition to OJK leadership, Indonesia Stock Exchange CEO Iman also resigned on Friday to help restore market confidence. The Stock Exchange’s Director of Development, Jeffrey, said that the authorities have decided to appoint an acting CEO. The Exchange’s corporate secretary subsequently told reporters that a related announcement would be issued before trading resumes next week.
Index compiler MSCI on Tuesday (Jan 27) said that Indonesia's market lacked transparency in its shareholding structure, triggering turmoil in Indonesia’s stock market and the biggest two-day drop in nearly 30 years. Indonesia’s benchmark Jakarta Composite Index rebounded by as much as 2.2% in early Friday trading, but risk aversion across the Asia-Pacific region narrowed the gain to 1.2% by close.