AEI: The Importance of Increasing IDX Communication with the Capital Market Association Regarding PPK and FCA

AEINews - The Indonesian Issuers Association (AEI) has commented on the Special Monitoring Board (PPK) regulations with the full call auction (FCA) scheme implemented by the Indonesia Stock Exchange (BEI). According to Theo Lekatompessy, member of the AEI Advisory Board, BEI has officially conducted outreach to AEI, but needs to improve better communication with other associations in the capital market. Theo said that this was important because improving coordination and friendship could avoid negative perceptions of the Indonesian market, which manifested in the withdrawal of foreign investment.

Theo also believes that currently, implementing the FCA is not an urgent priority compared to increasing market liquidity. According to him, the FCA is more about compliance than increasing liquidity or overall market size. Theo wants BEI to improve coordination with related associations to prevent controversies related to FCA in the future.

In response to this input, the IDX has revised the Exchange Regulations regarding PPK to adjust the Special Monitoring Board criteria, which will come into effect on 21 June 2024. This revision follows the implementation of phase II of the Full Periodic Call Auction in March 2024 and the results of the Post Implementation Review regarding the FCA.