OJK to closely follow impact of the Fed`s tapering decision

OJK to closely follow impact of the Fed`s tapering decision

Muliaman D Hadad. (ANTARA/Yudhi Mahatma)

I think, the Fed`s tapering decision is the most important global issue to be observed."
Jakarta (ANTARA News) - The Financial Service Authority (OJK) said it would continue to closely follow the global economic development after the implementation of the the Feds decision to trim its massive financial stimulus this year.

"I think, the Feds tapering decision is the most important global issue to be observed," chief commissioner of the financial super body Muliaman D Hadad said here on Thursday.

The Fed has announced its decision to trim its bond buying program from US$85 billion to US$75 billion a month starting this month.

"We have studied the market policy from change in the lots of shares and lowering of fraction of share prices, to expansion of investment products," Muliaman said.

He said learning from the experience in mid 2013, the financial institutions and capital market watchdog would be able to forestall negative impact of the Feds policy that this year the opportunity if open for the composite share price index to rise.

Chief executive of the OJK capital market supervisory division Nurhaida said OJK has formed a road map for good corporate governance (GCG) to improve the performance of listed companies amid the global liquidity tightening.

Basically, there are things that need to be improved in GCG, which is to be adopted by listed companies that implementation would be on the same level with those in other countries, Nurhaida said.

"For example, under the present capital market regulation, the agenda of shareholders general meeting (RUPS) is announced 14 days earlier. Based on our study in other countries, the announcement is much earlier or 21 days before the RUPS," she said.

She said the GCG road map is to be launched on January 17.

"This year we together with SRO (Self Regulatory Organization) have formed an investor protection agency to forestall the global negative impacts.

"The protection for investors is one of our effort to maintain domestic market stability to increase investors confidence in the industry," she said.
(Uu.H-ASG/A014)

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