Stock Market Thrives on BI Rate, Fuel Price Policy: Analyst
2 April 2015 13:08 WIB
TEMPO.CO, Jakarta - Analyst said that the government's efforts in maintaining economic stability is a breath of fresh air for the Jakarta Composite Index (JCI).
"The government's decision to lower the BI Rate strengthens the stock market," PT Asjaya Indosurya Securities analyst William Surya Wijaya told Tempo on Wednesday, April 1.
In addition to the BI Rate cut, the government's efforts in maintaining forex reserves help improve the economy and stabilize inflation. Previously, investors predict the inflation rate will reach 0.22, but the number remains at 0.17 today, urging local and foreign investors to be more confident to invest.
The decision to set fuel prices according to market conditions also serves as a positive market sentiment. The policy will lessen the government's burden from the petroleum industry, allowing them to focus on more productive sectors such as agriculture.
Additionally—contrary to what people speculated, the Fed's policy to delay interest rates hike had little effect on the Indonesian stock market. "Investors can see that delay is a strategy to keep investors from running," William said.
YOLANDA RYAN ARMINDYA
