Kontan Online

JAKARTA COMPOSITE INDEX

Market tenses over Jakarta’s 2nd round election

Thursday, 16 February 2017 | Agung Hidayat, Dina Mirayanti Hutauruk, Eldo Christoffel Rafael, Elisabet Lisa Listiani Putri, Hasyim Ashari, Petrus Sian Edvansa, Ramadhani Prihatini

JAKARTA. Results of quick counts on Jakarta gubernatorial election show that the election will continue to the second round. In the final round, the pair of candidates number 2 Basuki Tjahaja Purnama-Djarot Syaiful Hidajat will face the pair of candidates number three Anies Rasyid Baswedan-Sandiaga Salahuddin Uno.

Overall, the concurrent local elections, which were held on 15 February, ran in a peaceful manner. However, the domestic political tensions, mainly in Jakarta, have not completely calmed down, as the election will continue to the second round. “Markets will keep an eye on the political situation until the local elections process complete,” said stock market observer Satrio Utomo.

In a short term, market participants will positively respond the results of local elections in 101 regions across Indonesia, including in Jakarta. Director of Investa Saran Mandiri Hans Kwee estimates that the conducive situation during the local elections may attract the foreign investors to invest in Indonesia.

Markets tend to adopt wait and see stance. However, the markets predict that the second round of Jakarta gubernatorial election will not affect to the overall performance of the Jakarta Composite Index (JCI).

“The scope of the election is only at territorial level, not a presidential election,” said Senior Analyst at Binaarthe Parama Sekuritas Reza Priyambada. Aside of the local elections, the investors will keep monitoring the global issue, such as the economic growth in the US and Europe, as well as The Fed’s plan to increase the interest rate.

Reporter: Agung Hidayat, Dina Mirayanti Hutauruk, Eldo Christoffel Rafael, Elisabet Lisa Listiani Putri, Hasyim Ashari, Petrus Sian Edvansa, Ramadhani Prihatini
Editor: Barratut Taqiyyah