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Reuters
19-03-2025
- Business
- Reuters
Indonesia takes currency, stock market measures after rupiah and index fall
JAKARTA, March 19 (Reuters) - Indonesia's financial services regulator has allowed listed companies to buy back their stocks without shareholders approval, while the central bank conducted bold currency intervention to calm markets, officials said on Wednesday. The moves came after the main stock index (.JKSE), opens new tab fell as much as 7.1% on Tuesday pressured by concerns over the government's fiscal strategy and growth prospects. The index recovered slightly on Wednesday. The rupiah extended losses on Wednesday, falling by as much as 0.7%. The currency was hit by spillover impact from Tuesday's drop in the stock market as well as global factors, Bank Indonesia's director of monetary and securities asset management Fitra Jusdiman told Reuters. "BI has and will continue to take anticipatory, mitigatory response to ensure stability in the rupiah exchange rate, maintain FX supply-demand, including by intervening in a bold and measured way," he said. The financial regulator's new buyback rules are effective for six months and are intended to shore up market confidence, said Inarno Djajadi, chief regulator for the capital market at the Indonesia Financial Services Authority. "We hope to give a positive signal that companies have good fundamentals, to provide market confidence to investors as well as give flexibility to listed companies to conduct corporate actions to reduce share volatility," Inarno told a press conference. The announcement comes hours before the central bank is due to hold a press conference on its monetary policy review. Most economists polled by Reuters expect BI to keep rates unchanged to prioritise rupiah stability.
Yahoo
03-03-2025
- Business
- Yahoo
Indonesia Defers Short-Selling Amid High Stock Volatility
(Bloomberg) -- Indonesia's financial regulator will defer short-selling of stocks by investors amid heightened volatility in the nation's equity markets. Cuts to Section 8 Housing Assistance Loom Amid HUD Uncertainty Remembering the Landscape Architect Who Embraced the City NYC Office Buildings See Resurgence as Investors Pile Into Bonds Hong Kong Joins Global Stadium Race With New $4 Billion Sports Park NJ Transit to Deploy Customer-Service Teams After Record Delays The nation may delay implementing short-selling to later this year, depending on market volatility, said Inarno Djajadi, head of capital markets supervision at the Indonesia Financial Services Authority. Regulators will also review allowing share buybacks without a shareholder meeting, he said. Indonesia initially planned to introduce short-selling in the second quarter this year. The decision to defer it came after the regulators held a meeting with brokers and fund managers on Monday to discuss recent market conditions as local equities sank into bear market last week before bouncing back on Monday. The local stock exchange, known as IDX, was planning to allow domestic retail investors to short-sell 10 stocks to increase options for investors during bearish markets, its development director Jeffrey Hendrik said last month. The recent selloff in Indonesia sent the benchmark Jakarta Composite Index into a technical bear market Friday as negative sentiment from global trade tensions, flat economic growth and the government's spending plans weighed on the market. The gauge surged 4% Monday, its biggest gain in almost five years, as banking stocks rallied after JPMorgan upgraded some of the nation's lenders. --With assistance from Tassia Sipahutar. (Updates with regulator's comments in second paragraph.) Rich People Are Firing a Cash Cannon at the US Economy—But at What Cost? Trump's SALT Tax Promise Hinges on an Obscure Loophole Walmart Wants to Be Something for Everyone in a Divided America Warner Bros. Movie Heads Are Burning Cash, and Their Boss Is Losing Patience The US Is Withdrawing From Global Health at a Dangerous Time ©2025 Bloomberg L.P.
