DPR visits IDX after trading halt and urges exchange to keep making improvements
Jakarta (ANTARA) – Deputy Speaker of the Indonesian House of Representatives Sufmi Dasco Ahmad visited the Indonesia Stock Exchange (IDX) in Jakarta on Friday afternoon, following a trading halt in the Jakarta Composite Index (JCI), and urged the exchange to continue making improvements.
He said the exchange also needed to accommodate views from international rating organisations, including Morgan Stanley Capital International (MSCI). Dasco visited the IDX alongside Financial Services Authority (OJK) Board of Commissioners Chair Frederica Widyasari and National Police Chief General Suyudi Ario Seto.
“We are monitoring the situation and asking the exchange to continue making improvements,” Dasco said at a press conference at the IDX.
He said MSCI was expected to conduct a review or consultation in November, but had issued a review of sorts early on Friday morning Western Indonesian Time (WIB).
“The exchange had in fact already undertaken processes to accommodate reviews that were only due in November. In this case, however, the OJK and the exchange have already carried out those processes,” he said.
“All parties will provide explanations within their respective remits,” he added.
Earlier on Friday morning, the IDX’s JCI fell 8 per cent, breaching the threshold for a trading halt. The decline was triggered by MSCI’s announcement that it was opening a consultation on changing the classification of Indonesia’s capital market from emerging market to standalone market.
The JCI opened down 469.86 points, or 8.01 per cent, at 5,393.92, triggering the halt. The LQ45 index, which tracks 45 leading shares, fell 49.14 points, or 8.33 per cent, to 540.95.
“If support at 5,828 is breached, corrective pressure could continue, closing the gap in the 5,805–5,744 and 5,704–5,695 areas, with 5,700 the next psychological support level. If that level also gives way, the JCI could face a deeper decline towards 5,300, the previous low,” said Kiwoom Sekuritas Indonesia Head of Research Liza Camelia Suryanata in a report on Friday.