Indonesia Capital Market and its Policies at the Beginning of 2020

Indonesia’s capital market showed a significant decline during the beginning year of 2020, but it starts to recover since March 2020. The significant declining touch at the lowest level at 3,911.71. The recovery did not only happen in the Indonesia capital market but also globally. It shows rebound since 26-27 March at the entire world. Therefore, it proves a positive sentiment.

Due to the incisive fluctuation of market conditions, OJK issued several policies to control the capital market so the market condition itself would be steady and stable slowly. One of the policies was cutting the capital market trading time for about 1.5 hours from the normal trading time. It is effectively applied since 30 March 2020 until the next announcement of capital market authority. Additionally, OJK also gives room to the shareholders to conduct buyback without the approval in the general meeting of shareholders. Other policies also being conducted even though it did not show straight-line recovery directly. If it shows positive sentiment, then the condition of the capital market is getting better.

SAHH

Source:

• CNBC Indonesia