JSX blast shatters investor confidence<\/p>\n
JAKARTA (JP): The blast at the Jakarta Stock Exchange (JSX)
\nbuilding on Wednesday has further rattled investor confidence in
\nthe country and may slowdown the economic recovery process,
\nanalysts and government officials say.<\/p>\n
Stock analyst Dandossi Matram said on Thursday that the
\nbombing further increased the risk associated with Indonesia.<\/p>\n
\"When someone bombs a stock exchange building, it's bound to
\nattract international attention,\" he said. He, however, expected
\nno panic selling when stock trading on the JSX resumes on Monday
\nas market players would have already \"cooled down\" by then.<\/p>\n
\"The trade suspension would allow the market to cool down and
\nreduce the possibility of panic selling once trading reopens on
\nMonday,\" he said.<\/p>\n
Trading on the JSX was suspended Wednesday afternoon after a
\ncar bomb exploded in the car-park basement of the building
\nkilling 10 people. The JSX composite index was at 442.091 points,
\nthe lowest so far this year.<\/p>\n
The bombing occurred a day before the resumption of the
\ncorruption trial of former authoritarian president Soeharto. An
\nexplosion also occurred on the day before the first trial session
\nof Soeharto opened about two weeks ago.<\/p>\n
The JSX management held a successful trading simulation late
\non Thursday with trading systems and equipment working normally.
\nThe building management insisted that trading should remain
\nsuspended due to \"minor\" technical problems, including a non-
\nfunctioning water pipeline system.<\/p>\n
But Coordinating Minister for Economy Rizal Ramli called on
\nthe exchange's management to resume trading as soon as possible
\nto help revive market confidence.<\/p>\n
Chief commissioner of PT Bursa Efek Jakarta Erry Riyana
\nHardjapamekas said that the exchange needed to remain closed
\nuntil Monday for security reasons.<\/p>\n
\"There will be a construction audit to check whether the
\nbuilding has any cracks that might pose a danger,\" he said.<\/p>\n
Rupiah<\/p>\n
Meanwhile, after falling to Rp 8,775 per U.S. dollar late on
\nWednesday, the rupiah gained ground and managed to strengthen to
\naround Rp 8,550 late on Thursday.<\/p>\n
Traders said the rupiah inched up after Bank Indonesia
\nintervened in the currency market in the afternoon to protect the
\nIndonesian unit.<\/p>\n
But Bank Indonesia deputy governor Miranda Goeltom said on
\nThursday that the central bank had not taken any special measures
\nto safeguard the currency.<\/p>\n
Speaking on the sidelines of a seminar, Miranda said that any
\nmarket intervention measures must be based on serious
\ncalculation.<\/p>\n
\"So in the short term, there will be no special action. We
\nstill have to study the situation first,\" she said.<\/p>\n
She said that the central bank would continue to follow a
\nconsistent monetary policy to help maintain investor confidence
\nin the country.<\/p>\n
The JSX bombing created jitters in the currency market,
\nthereby increasing the pressure on the rupiah, she said, adding
\nthat the weakening of the rupiah had also been in line with the
\nfall of other currencies in the region.<\/p>\n
Separately, International Monetary Fund chief representative
\nin Jakarta John Dodsworth expected the weakening in the rupiah
\nwould only be temporary.<\/p>\n
\"The rupiah is slightly better today,\" he said following a
\nmeeting with senior economic ministers.<\/p>\n
But Cabinet Secretary Marsilam Simanjuntak said that the JSX
\nbombing and the Attambua killing could sabotage efforts to
\naccelerate the country's economic recovery process.<\/p>\n
\"The positive development in the economic front will be badly
\naffected by the Attambua incident and the JSX bombing,\" he told
\nreporters following a Cabinet meeting on Thursday.<\/p>\n
The meeting was chaired by Vice President Megawati
\nSukarnoputri and was also attended by President Abdurrahman
\nWahid. (rei\/bkm\/byg)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-blast-shatters-investor-confidence-1447893297",
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