CARING AND GLOBAL UNIVERSITY
The Minister of Finance Chatib Basri confirmed that the strengthening of IHSG and Rupiah exchange rate last week (14 March 2014) was completely because of the local market players. On the flipside, he did not refuse the probability that it may be caused by the positive sentiment after the Governor of Jakarta, Joko Widodo stated that he would run for the presidential election, representing Partai Demokrasi Indonesia Perjuangan.
He presumed that the main factor, indeed, was Jokowi’s willingness to run for the election. “Is it because Jokowi’s willingness to run for President? Yes, it can be,” said Chatib before having to a Tax MoU meeting with Jakarta’s provincial government at the City Hall, Jakarta, Monday (17/2)
IHSG index increased 3,2 percent, while Rupiah strengthened 30 percent.
“I can say that the event last Friday was a local phenomenon and was encouraged by a local sentiment because it was a mixed conditioned in regional market,” he said.
Today, Monday (17/1) there is a possibility that the stock market will decline because investors will be trying to sell their stock and getting profit.
As a reminder, in last week’s closing (14/3), IHSG strengthened 152 point at 4,878. The flow of foreign funds into Indonesia reached Rp 7,48 trillion. Rupiah exchange rate strengthened 11 point at Rp 11,375 against US Dollar. The phenomena happened just after Jokowi, for the first time, agreed for his running on presidential election.