Investors Respond Negatively Over Appointment of House Speaker
2 October 2014 16:36 WIB
TEMPO.CO, Jakarta - Stock market and foreign exchange players responded negatively to the failure of Joko Widodo's coalition in securing the position of the head of the House of Representatives. "Although the effect is not massive, investors are selling [Rupiah]," said capital market expert Satrio Utomo, noting that there has been a total of Rp 166 billion of transaction earlier this morning.
Satrio expected that there will be foreign exchange trade of over Rp700 billion. The transaction exceeds the regular trade of Rp500 billion. In addition, Reza Priyambada, analyst from Woori Korindo Securities Indonesia, said that the traders' negative sentiment was caused by the concern over the House's move to tackle Jokowi's programs. "Traders respond negatively toward the result of the House plenary meeting in Senayan," he said.
The plenary meeting has agreed upon the House leadership package. The House Chief post will be assumed by Setya Novanto from the Functional Group Party. His deputy will be Agus Hermanto from Democrat, Taufik Kurniawan from the National Mandate Party, Fadli Zon from the Great Indonesia Movement Party, and Fahri Hamzah from the Prosperous Justice Party.
AMOS SIMANUNGKALIT | M. AZHAR