During a discussion event with capital market players on Monday, the two also decided to ease rules regarding buybacks of the company’s stake without requiring shareholder meetings (RUPS).

“[We will] postpone the implementation of short selling and review the relaxation policy on share buyback without requiring RUPS,” Financial Services Authority (OJK) deputy commissioner for capital market investment management and securities supervision I. B. Aditya Jayaantara said as quoted by CNBC Indonesia.

This decision was taken in a bid to ease the pressure on the Indonesia Stock Exchange (IDX) Composite, which plunged 3.31 percent on Friday to close at 6,270.60, marking its lowest point since September 2021. With that position, the IDX Composite has seen an 11.43 percent decline since the beginning of this year.   

OJK chief executive for the stock exchange, derivative market and carbon exchange Inarno Djajadi said in the same discussion that he expected the decision to maintain stability and increase transaction liquidity in the stock market.

“We also want to say that we are here to observe and play an active role in maintaining the capital market,” he said, as quoted by Bisnis.  

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