Transparency and Enforcement in Indonesia's Stock Market
Jakarta's message to investors is clear: transparency and enforcement must come first if Indonesia wants to trade speculation for credibility.
Recently, Finance Minister Purbaya Yudhi Sadewa voiced concerns that the prevalence of stock price manipulation threatens to undermine investor confidence, particularly among younger and retail investors.
Integrity must precede growth.
He challenged the Financial Services Authority (OJK) and the Indonesia Stock Exchange (BEI) to clean up manipulative practices before seeking further incentives or tax breaks for the market.
Purbaya recounted how speculative trading and manipulative practices nearly brought the institution down.
Author's summary: Indonesia needs stronger enforcement against stock price manipulation.