Indonesia’s finance regulator and stock exchange officials hastily resigned on Friday following last week’s $80 billion stock market fall and concerns about transparency and governance.

Jakarta stocks fell the most in two days since April after MSCI threatened to downgrade them to “frontier” status, putting pressure on officials to restore investor confidence.
The OJK Financial Services Regulator said that Mahendra Siregar, its chief, and three key officials, including his deputy and capital markets head, had resigned.

Just hours before, officials told reporters they would lead an effort to address MSCI’s concerns and recommended investors to relax. Indonesia Stock Exchange CEO Iman Rachman resigned Friday.

The departures will not affect the regulator, said OJK.
Indonesia’s main economic minister Airlangga Hartarto said stock market reforms were underway and the economy was healthy.

Increase share free float to 15%, let pension and insurance funds invest 20%, and check shareholder affiliation with ownership below 5%.Good governance and transparency preserve investment, said Airlangga.

The Jakarta Composite Index (.JKSE), opens new tab plummeted more than 8% on Wednesday and Thursday but rose 1.18% on Friday as authorities proposed solutions to MSCI’s concerns and soothe investors.

The rupiah was near its lowest recorded rate of 16,985 last week at 16,790.

President Prabowo Subianto’s fiscal deficit expansion and government financial market activity have increased foreign capital outflows.