Can Authorities Extinguish the Fire in the Capital Market?
Bank Indonesia (BI) is still aggressively buying government securities (SBN) on the secondary market amid the battered financial market, particularly on last Monday (3/9), as the central bank increased its ownership on SBN, as quoted by Kontan.co.id. On Monday, BI’s SBN ownership reached Rp 121.66 trillion, increased by Rp 7.25 trillion from Rp 114.41 trillion on Friday (3/6) last week.
Meanwhile, the Financial Services Authority (OJK) has ordered the Indonesia Stock Exchange (IDX) to take a series of steps, from trading halt to suspension if the Jakarta Composite Index (JCI) continues to decline. The government is also preparing to anticipate weakening in the stock exchange by asking several SOE issuers to repurchase their shares, which are busy being released. In total, there are 12 BUMN ready to go to the market to buy up their shares with a total fund of Rp 7 trillion to Rp 8 trillion.