Saturday, 18 January 2020

Sri Mulyani: Cabinet Announcement Did Not Cause Index Collapse

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Laila Afifa

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  • TEMPO.CO, Jakarta - Finance Minister Sri Mulyani said that the Jakarta Composite Index's collapse was not caused by the announcement of ministers in President Joko Widodo's cabinet. The plummet, she said, was due to external factors.

    The first factor, Sri said, was the IMF-World Bank Annual Meeting that provided negative sentiments after it mentioned that the global economy has weakened. 

    "It could also have a psychological effect from the investment rate side, as [investors] need. When there are many projections of weakness, confidence could be affected," Sri said after being sworn into office by Jokowi, Wednesday, October 23. 

    The second factor is Brexit. "That's what dragging [the index down], things that drag-on cause [negative] sentiments as well".

    The JCI collapsed during the first trading session of Wednesday morning, around the same time with the inauguration of cabinet ministers under President Widodo and Vice President Ma'ruf Amin.

    During the morning session, the index lost 0.42 percent to 6,199.17 with 196 stocks corrected. Throughout the first trading session, the JCI moved between 6,235 and 6,197.

    The tumble caused Rp168.89 billion of foreign net sell in the markets, mainly the negotiation market and cash market with Rp100.48 billion recorded.

    Ahmad Faiz Ibnu Sani