JAKARTA \u2014 Hashim Djojohadikusumo, chairman of the advisory board of\nthe Indonesian Chamber of Commerce and Industry (Kadin), has called for\nthe practice of manipulating share prices, known locally as goreng\nsaham, to end. He warned that it could undermine investor confidence and\nintensify pressure on Indonesia\u2019s capital market amid issues highlighted\nby Morgan Stanley Capital International (MSCI).<\/p>\n
Hashim said concerns about capital-market transparency needed to be\naddressed promptly to prevent foreign investors from withdrawing funds.\nAn increase in capital outflows, he said, could put further pressure on\nthe rupiah.<\/p>\n
\u201cI ask my colleagues at Kadin to please stop these share-price\nmanipulation activities. I earnestly urge that this practice be halted\nimmediately,\u201d Hashim said at Kadin Indonesia\u2019s National Leadership\nMeeting at the Hotel Borobudur in Jakarta on Thursday (29 October\n2026).<\/p>\n
Hashim said the government intended to take firm action against\nshare-price manipulation. He cited law enforcement in Turkey, where, he\nsaid, 94 people had been arrested in connection with a similar case.<\/p>\n
\u201cThe government intends to act firmly. There was a similar incident\nin Turkey yesterday. Turkey had the same problem, and 94 perpetrators\nhave reportedly been arrested by the Turkish police. We must not let\nthis happen in Indonesia,\u201d he said.<\/p>\n
According to Hashim, share-price manipulation risks harming domestic\ninvestors. He said Indonesia\u2019s capital market had 32.7 million\ninvestors. He also said he was dissatisfied with the stock market,\nincluding as an investor who owns shares in publicly listed\ncompanies.<\/p>\n
\u201cWe have to be honest: I think almost every Kadin member buys shares.\nYou\u2019re not satisfied, are you? Neither am I. I also own shares in public\ncompanies, and I\u2019m dissatisfied. The government should therefore pay\nattention to this issue,\u201d he said.<\/p>\n
Hashim drew attention to shares with a limited public ownership (free\nfloat) but an exceptionally high price-to-earnings ratio (PER). He said\nthis was one of the problems that needed to be addressed to improve\ntransparency and ensure fair trading.<\/p>\n
\u201cWhen the free float is restricted and the price-to-earnings ratio is\nexorbitant and makes no sense, that is the issue in question,\u201d Hashim\nsaid.<\/p>\n
He warned that failure to address Indonesia\u2019s capital-market problems\nseriously could affect MSCI\u2019s assessment and foreign investor\nconfidence. If investors pulled their money out of the domestic stock\nmarket, pressure on the rupiah could increase.<\/p>\n
\u201cThis is an extremely serious issue, because if foreign investment\nleaves our stock exchange, the rupiah could weaken further. I have\ncalculated that it could reach Rp 20,000 to Rp 21,000; some even say Rp\n22,000 to the US dollar,\u201d he said.<\/p>\n
Hashim also warned that a weaker rupiah could have broad economic and\npolitical repercussions. He urged the government and market participants\nto address transparency problems and put an end to share-price\nmanipulation without delay.<\/p>\n
\u201cI think the ones who will suffer are our 32.7 million friends and\nfellow citizens. I\u2019m sorry, but I want to be frank: this is a very\nserious issue. We must not let the rupiah reach Rp 21,000\u2013Rp 22,000.\nThat would have extraordinarily negative political consequences,\u201d Hashim\nsaid.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/msci-scrutiny-hashim-warns-rupiah-could-fall-to-rp-21-000-1793328695", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }