The President Director of the Indonesia Stock Exchange (IDX), Iman Rachman, resigned on Thursday, following a sudden market collapse that erased over US$84 billion from the country’s stock market in just two days. His resignation comes amid growing concerns about market governance and transparency, and is seen as an attempt to stabilize investor confidence.
Speaking to reporters, Rachman said he was taking responsibility for the turmoil and hoped his resignation would help pave the way for reforms. “This decision is about accountability and giving the market a chance to recover,” he said. Analysts believe the move may help restore investor trust in Indonesia’s financial system.
The shake-up extends beyond the stock exchange. The Financial Services Authority (OJK) also saw resignations from key officials, including its chairman, who cited similar accountability for the market downturn.
Finance Minister Purbaya Yudhi Sadewa welcomed Rachman’s resignation, describing it as a “strong signal of responsibility and commitment to market stability.” The government has promised a series of reforms to improve transparency, increase share liquidity, and attract more institutional investors.
The sharp decline was triggered after MSCI, a global index compiler, warned that Indonesia’s stock market risked being downgraded from an emerging market to a frontier market. This warning sparked panic selling, with the Jakarta Composite Index (IHSG) losing more than 8% over two sessions. Some trading was temporarily halted as authorities tried to curb the sell-off.
Also Read: Samsung India creates Guinness-winning photo mosaic