The performance of the Indonesian rupiah exchange rate and stocks has been impacted by defeated presidential candidate Prabowo Subianto’s withdrawal from the General Elections Commission’s electoral process on Tuesday (22/07). Although the Commission (KPU) has not publicly announced the outcome of the 2014 presidential election yet, Subianto’s response is a clear sign that rival Joko Widodo - as expected - has won the election. Subianto claims that the KPU is corrupt and will challenge the outcome in the Constitutional Court.
Due to these developments, the benchmark stock index of Indonesia (Jakarta Composite Index) had fallen 2.15 percent by 15:00 pm local Jakarta time after being in the green zone for most of the day. Similarly, the rupiah suddenly depreciated 0.57 percent to IDR 11,638 per US dollar according to the Bloomberg Dollar Index by the same time.