Previously, most analysts forecasted an impressive win for the PDI-P based on the 'Jokowi effect'. However, the result on Wednesday implied that the PDI-P cannot nominate Jokowi on its own, instead requiring to form a coalition with at least one other Indonesian political party. Moreover, a fragmented parliament causes the emergence of doubts about much-needed future reforms as well as infrastructure development in Indonesia for the next five years.

On Thursday (10/04), global funds recorded net selling of USD $129 million. Although Indonesia's benchmark stock index (Jakarta Composite Index or IHSG) rebounded on Friday with a 0.44 percentage growth after the first trading session, the rupiah continued to depreciate sharply. Based on the Bloomberg Dollar Index, the rupiah had depreciated 0.95 percent to IDR 11,465 per US dollar at 12:45 local Jakarta time.

This week, a return of inflows in emerging markets had been seen after concerns about an early US interest rate hike eased (based on the FOMC minutes released earlier this week).

Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.95 percent to IDR 11,450 per US dollar on Friday (11/04).

| Source: Bank Indonesia