Legislator says IHSG strengthening signals improving economy

Bogor, Jawa Barat (ANTARA) - Member of the House of Representatives (DPR RI) Commission VI Herman Khaeron said that the strengthening of the Jakarta Composite Index (IHSG) on the Indonesia Stock Exchange (BEI) and the rupiah exchange rate is a signal that the Indonesian economy is improving. “Hopefully this is a signal that our economy is starting to improve with the various strategies and measures being implemented by the administration of President Prabowo Subianto,” Herman Khaeron said in Bogor City, West Java, on Friday. He said he hoped the strengthening of the IHSG and the rupiah against the US dollar would be sustained and have a positive effect on the Indonesian economy. He noted that recent trends in both the IHSG and the rupiah exchange rate had been quite worrying, and therefore the public also needs to support the steps taken by the government. “The more we unite, the more we are solid, the more we show our strength, capability, and unity, the more it will demonstrate trust to investors,” he said. He also expressed hope that investors who had previously exited would return to invest in Indonesia again. Herman Khaeron, familiarly known as Kang Hero, added that the increase in the benchmark interest rate or BI-Rate by 25 basis points to 5.75 percent was a fairly effective measure. In addition, he also hoped the conflict in the Middle East would continue to improve, so that oil prices would fall and in line with that, the rupiah exchange rate could strengthen. “When oil prices fall, it is hoped that fuel prices will decrease and the state’s burden for subsidies, compensation, and those based on the US dollar exchange rate can also be reduced,” he added. Previously, the Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange (BEI) on Friday afternoon closed slightly higher amid a combination of domestic and global sentiment. The IHSG closed up 4.80 points, or 0.08 percent, at 6,177.14. Meanwhile, the LQ45 index of 45 leading stocks fell 7.52 points, or 1.22 percent, to 609.40.