Novy Lumanauw, Jakarta – President Joko "Jokowi" Widodo called the Indonesian capital market authorities to toughen measures against market manipulations on Thursday, in his first comment of the year on the financial market after it emerged that the country's largest state-owned insurer has run into a brink of collapse due to reckless investment in the stock market.

"I hope 2020 can be a momentum the Financial Services Authority and for the Indonesia Stock Exchange to launch the cleaning up of capital market manipulators," Jokowi said when opening the first trading day of the year at the IDX in Jakarta.

Jokowi made the comment after the Attorney General's Office launched criminal investigation into Asuransi Jiwasraya last month over alleged corruption and recklessness among its executives in managing the insurer's fund.

The AGO said Jiwasraya disregarded the principle of prudence by investing in penny stocks and mutual funds that also went to bad-performing stocks, a high-risk asset class that was more prone to manipulation.

"Be careful, clean up and stop these [misconducts]. At present, our country is a focus of attention. Many [other countries] are watching. Many are interested in investing here," he said.

A Bloomberg survey of global investors placed Indonesia as the most preferred emerging market for 2020, ahead of China, India, and Brazil.

"This is something we should be thankful for. Such a trust should not be lost because of manipulators," Jokowi said.

Financial Services Authority (OJK) chief commissioner Wimboh Santoso said the authority would continue its efforts to create a capital market industry that is resilient, efficient, transparent and credible.

Improving the governance among the market participants would be OJK's first priority, Wimboh said.

"We hope we will be able to strengthen confidence among investors and market participants in the Indonesian capital market," he said.

Source: https://jakartaglobe.id/business/jokowi-calls-for-capital-market-cleanup