Mr. Inarno Djajadi presented Financial Services Authority (OJK) various strategies to address the current pressure on the Composite Stock Price Index (IHSG). emphasizing coordinated efforts, rational investment decisions, and stakeholder collaboration for financial stability.

Source: Keuangan News

Chief Executive of the Capital Market, Derivatives Financial, and Carbon Exchange Supervisory Agency (PMDK) at the Financial Services Authority (OJK) Mr. Inarno Djajadi, elaborated several strategies adopted by the OJK in response to the recent events that have an impact on the Composite Stock Price Index (IHSG) during a briefing on Thursday, 13th June.

In order to protect the stability of the financial system, Mr. Djajadi highlighted the coordination efforts undertaken with the Ministry of Finance, Bank Indonesia (BI), and the Deposit Insurance Corporation (LPS) under the auspices of the Financial System Stability Committee (KSSK). 

He also urged market participants to remain rational and consider various factors, including both fundamental and sentiment aspects, in making investment decisions. Furthermore, close monitoring activities were carried out together with Self-Regulatory Organizations (SROs) to ensure the market operates in an orderly, fair, and efficient manner.

Additionally, brainstorming sessions were held with SROs, associations, and market players to gather insights and inputs for future policy and regulatory development. Mr. Djajadi explained that the IHSG movement was influenced by fundamental factors and sentiments, both globally and domestically.

In terms of issuer’s fundamental factors, based on financial data releases for the first quarter of 2024, over 50 percent of issuers experienced a decline in performance, with aggregate profits decreased by 10.6 percent year-on-year (yoy) compared to the first quarter of 2023.

Moreover, recent signals from Bank Indonesia Governor Mr. Perry Warjiyo and Finance Minister Ms. Sri Mulyani Indrawati indicated ongoing global economic uncertainties, potentially impacting domestic economic pressures.

At the close of trading on Thursday, 13th June 2024, the IHSG stood at 6,831.56, with the LQ45 index at 858.62, representing a year-to-date decline of 6.07 percent for the IHSG.

Source: Antara News