10 May 2022 (closed)
Jakarta Composite Index (6,819.79) -89.96 -1.30%
USD/IDR (14,146) -6.00 -0.04%
EUR/IDR (17,335) +57.05 +0.33%
Amid mostly gaining stock markets in Southeast Asia on Tuesday (11/11), the benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated IHSG) rebounded sharply after several days of declines. Most Indonesian blue chip stocks rose considerably after having tumbled in recent days. Positive market sentiments were caused by Joko 'Jokowi' Widodo’s participation in the Asia Pacific Economic Cooperation (APEC) summit in Beijing as well as news that both camps in Indonesian parliament have agreed to work together.
Joko Widodo’s participation in the APEC meeting as well as the ASEAN summit in Myanmar and followed by a G20 meeting in Brisbane causes optimistic views on enhanced regional trade and foreign direct investment to Indonesia. For example, Russia pledged to target USD $5 billion in trade with Indonesia in 2015, while Russia is also developing a USD $1 billion aluminium smelter in the country.
Meanwhile, the Merah-Putih coalition (led by defeated presidential candidate Prabowo Subianto) and the minority coalition that supports Widodo made an agreement on the number of seats for leaders of parliamentary commissions. This ‘truce’ is expected to ease investors’ minds regarding political uncertainties in Southeast Asia’s largest economy.
However, the market is still concerned about the looming subsidized fuel price hike. The government previously confirmed that the prices of subsidized gasoline and diesel were to rise in November but as of yet there has been made no announcement of a timing or exact amount.
The IHSG gained 1.35 percent on Tuesday (11/11) to finish at 5,032.28 points.
Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.21 percent to IDR 12,163 per US dollar on Tuesday (11/11).| Source: Bank Indonesia