However, OJK has deemed that market players are quite ready in responding to the (fluctuating) capital market performance, so there will not be any disturbance much like what happened in 2020Jakarta (ANTARA) - Investor sentiment in Indonesia's capital market is still dependent on the government's as well as citizens' efforts in handling the COVID-19 pandemic, Hoesen, Executive Head of Capital Market Supervision at the Financial Services Authority (OJK), opined.
"However, OJK has deemed that market players are quite ready in responding to the (fluctuating) capital market performance, so there will not be any disturbance much like what happened in 2020," he stated at an event held here to mark 44 years of the reactivation of Indonesia's capital market on Tuesday.
So far, it has been seen that the market is still moving sideways with the Indonesia Composite Stock Exchange (IHSG), which is trying to maintain a level of 6,000, indicating an upward trend amid national economic recovery, he observed.
During the first quarter of 2021, Indonesia's capital market performed really well, he noted.
IHSG reached a high of 6,435.21 on January 13, 2021, he said.
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However, with the passage of time and due to global phenomena, the performance of the domestic capital market declined in the second quarter.
The global phenomena include the emergence of the Delta variant in India, lockdown policies in several countries, as well as a declaration by the World Health Organization (WHO) that the pandemic is not going to end soon.
"Because of these events, IHSG once reached its lowest position at 5,760.58 points on May 19, 2021," Hoesen explained.
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Due to high COVID-19 transmission, the Indonesian government also decided to implement public activity restrictions (PPKM), which resulted in a reduction in the consumption rate, he stated.
The impact of this policy led the Finance Minister to revise the economic growth target for 2021 from 4.3-5.3 percent to 3.7-4.5 percent at the Mid-Year Economic Outlook online seminar held on July 7, 2021, Hoesen added.
Nevertheless, Statistics Indonesia (BPS) has said that in the second quarter of 2021, Indonesia's economy recorded positive growth of 7.07 percent (yoy), he noted.
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Translator: Citro Atmoko, Fadhli Ruhman
Editor: Fardah Assegaf
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