Finance Minister Calls for Stronger Action Against Manipulative Trading on IDX

Enhanced Oversight Demanded

Finance Minister Purbaya Yudhi Sadewa has made a strong appeal to the Indonesia Stock Exchange (IDX) to take decisive action against manipulative trading practices, particularly 'saham gorengan' (pump and dump schemes). Speaking at the IDX building in Jakarta, Purbaya emphasized that the exchange's leadership must demonstrate a robust commitment to market integrity and investor protection.

Conditions for Government Incentives

The minister made it clear that any government incentives for the IDX will be contingent upon their success in curbing manipulative trading practices. Purbaya stated that he would inquire about the IDX's achievements, particularly the number of individuals apprehended for such practices, before considering any incentive requests. This stance indicates a stricter approach to supporting the capital market infrastructure.

Upcoming Leadership Transition

The minister's remarks come at a crucial time as the current IDX directors' term (2022-2026) is set to expire this year. The appointment of new directors for the subsequent period is expected to be announced through the Annual General Meeting of Shareholders (RUPST), following approval from the Financial Services Authority (OJK), likely around mid-year.

Market Implications

Purbaya highlighted that manipulative trading practices, particularly 'saham gorengan', are detrimental to small investors. He urged the IDX to take a more proactive role in regulating market behavior and protecting retail investors from such practices. The minister's statements underscore the government's growing focus on enhancing market integrity and investor protection in Indonesia's capital markets.