Indonesia’s benchmark Jakarta Composite Index fell 0.94 percent to 4,856.60 points on Friday (24/07) as foreign investors - who accounted for nearly half of total trading activity - continued to record a net sell (approx. USD $9.2 million). Trading activity was still low as part of the investor community extend their Idul Fitri holiday (16-21 July) for a few days.

Jakarta Composite Index (IHSG):

The Indonesian Finance Ministry raised import tariffs for various consumer goods (effective per Thursday 23/07). For example, meat (the import duty was raised from 5 to 30 percent), coffee/tea (raised from 5 to 20 percent), cars (fixed at 50 percent from the range of 10-40 percent previously), clothes (raised to the range of 20-25 percent depending on item, from 15 percent previously), and beverages with alcohol content of at least 25 percent (now subject to an import tariff of 150 percent).

Companies that saw their shares plunge on Friday included retailer Mitra Adiperkasa (-6.41 percent), car distributor Astra International (-3.27 percent), and home improvement retailer ACE Hardware (-3.03 percent).

Other factors that impacted negatively on Indonesian stocks at the end of the trading week were disappointing financial results (and future outlooks) of several big US companies, causing losses on Wall Street and dragging down indices in the East. Also further falling commodity indices (oil returning to bear market on resilient US output and rising OPEC supply) caused negative market sentiments. Lastly, the Indonesian rupiah continued to depreciate against the US dollar ahead of further monetary tightening in the USA.

Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.40 percent to IDR 13,448 per US dollar on Friday (24/07).

Indonesian Rupiah versus US Dollar (JISDOR):

| Source: Bank Indonesia