uthorities from the Financial Services Authority (OJK), state asset fund Danantara and the House of Representatives, visited the Indonesia Stock Exchange (IDX) office in South Jakarta on Tuesday in an effort to restore investor confidence amid the stock market plunge.
The benchmark index was down 1.85 percent on Monday and plunged again by more than 3 percent in the morning trading session on Tuesday.
“We have discussed how to boost global investor confidence, as well as how to maintain the growth of retail investors. With our current fundamentals, I believe we can become stronger,” House Deputy Speaker Sufmi Dasco Ahmad said following a meeting with IDX officials.
He is accompanied by OJK head Friderica Widyasari Dewi, Danantara chief executive officer Rosan Roeslani and Danantara chief operating officer Dony Oskaria, during the visit.
Dasco praised the authorities’ efforts to implement the stock market reform, which was previously introduced to address transparency concerns raised by the global stock index MSCI in January.
OJK’s Friderica also noted that the recent decline in the stock market had reflected part of the “logical consequences” from the authorities’ stock market reform.
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Domestic sentiment following MSCI’s rebalancing decision on May 12 has continued to weigh on the market after trading resumed from last week’s two-day holiday break.
