Capital Market Unaffected by Political Stir, Analyst Says

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  • Anggota MPR-DPR-DPD mengikuti pengucapan sumpah jabatan yang dipimpin Ketua Mahkamah Agung Hatta Ali di Gedung Nusantara, Parlemen Senayan, Jakarta, 1 Oktober 2014. ANTARA/Yudhi Mahatma

    Anggota MPR-DPR-DPD mengikuti pengucapan sumpah jabatan yang dipimpin Ketua Mahkamah Agung Hatta Ali di Gedung Nusantara, Parlemen Senayan, Jakarta, 1 Oktober 2014. ANTARA/Yudhi Mahatma

    TEMPO.CO, Jakarta - The election of the People's Consultative Assembly (MPR) Speaker apparently does not affect investor's call in the capital market. Analyst from the Asia Financial Network Agus Susanto, said that compared to the political factor, the market is now concerned upon the Fed's plan to increase its reference rate by the end of the year.

    Moreover, Agus said that the market also considers the weakening of Indonesian fundamental economy. Trade deficit is widening and economic growth is stalled at 5.2 percent in the second semester. "Political factor only has little effect," said Agus.

    The market will unlikely to react, even if Prabowo coalition presides over the MPR. He added that the market is optimistic that Joko Widodo will be named president by the MPR. Instead, concerns were raised regarding the issuance of future regulations due to the fact that the parliament and the government may not share the same perspective.

    Agus added that foreign investors fear the notion of nationalization, such as the emerging market in South America. Regardless, he confirmed that such thing will not happen in Indonesia.

    FAIZ NASHRILLAH