The Jakarta Composite Index movement is displayed on a trading screen at the Indonesia Stock Exchange building in Jakarta. (KOMPAS.com)
Indonesia’s stock market recorded its worst decline since the 1997–98 crisis, wiping out over US$80 billion in value. The carnage stemmed from a report by an American finance company, MSCI, underlining weak governance and transparency in Indonesia’s business sphere. Confidence was further rocked due to concerns over central bank independence, opaque markets and political interventions, leaving capital markets under pressure and credibility at stake.
In response, the Central Bank and the Ministry of Finance have promised transparent, accountable and strong governance arrangements to assure global investors.
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