• Wednesday, 22 November 2017

Jakarta Composite Index (IHSG) Declined 0.5 Percent After The Bombing

stock market

Jakarta Composite Index (IHSG) declined 0.5 percent this afternoon. The Sarinah bombing that happened last morning had a direct impact to this lowering points. The bombing was not the only one indicator, Indonesia Central Bank (BI) aggreed to cut interest rate. Having several impact, IHSG finally closed in its lowest point. Meanwhile, rupiah’s value to US dollar stayed at 13,900 rupiah.

Market experts and stockbrockers were very unlucky due this hideous bombing. Many of them thought that market hates uncertainty. Unstable political system and lack of security take a part in a market activity. IHSG’s latest position was 4,456 points. They evaluated that those points were much lower than yesterday.

Stock market analyst had a different thought regarding the position of Indonesia Central Bank. Cutting interest rate into 7.25 percent had nothing to do with the bombing. Indonesia Central Bank hoped its action could help the market lethargy. This was the first interest cutting rate that had been conducted by Indonesia Central Bank since 11 months ago.

Executive Director for Economic and Monetary Policy in Indonesia Central Bank, Juda Agung said that the terorrist bombing which had shaked Jakarta this morning had an undirect impact to currency market. “We are still continuing to monitor every exchange rates and market movement,” Juda Agung said. “We sense there are an upheavel in the market, but we keep to monitor,” he added. He also mentioned that every market experts should not be worry about market stability.

“Indonesia’s economic condition is still in the good shape,” he said optimistically. In addition, he said that deficit transaction is in optimal condition. “Recovering act is ongoing, so there is no reason to stay weaker,” he said. Bloomberg’s data showed that at 10.35 WIB, rupiah’s value was in 13,987. At 10.55 WIB after the bombing, rupiah declined to 13,943 per US dollar. This rates continued to decline down to 13,981, much weaker than yesterday. At three o’clock in the afternoon, rupiah stayed at 13,857 per US dollar. In the other side, BI’s middle rate was 0.12 percent weaker than before.

 

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Iqbal Ramadhan

Graduated from UNPAD International Relations Post Graduate Program. Having a passion in social studies, journalism, security studies and cyber risk.