Mega hails JSX's positive response

Mega hails JSX's positive response

Dadan Wijaksana, The Jakarta Post, Jakarta

President Megawati Soekarnoputri paid an unscheduled visit to the
Jakarta Stock Exchange on Wednesday, thanking the market for its
positive response during the largely peaceful legislative
elections.

On Tuesday, a day after the first-round of elections took
place, the market's composite index rose.

"I express my appreciation to the Jakarta stock market for its
positive reaction to the elections, which took place peacefully,"
Megawati told traders and dealers during her brief visit.

Coordinating Minister for the Economy Dorodjatun Kuntjoro-
Jakti, Minister of Home Affairs Hari Sabarno and Minister of
Forestry M. Prakosa accompanied Megawati.

Indonesia held its second elections on Monday after the fall
of former strongman Soeharto, who had ruled the country for 32
years.

The process was generally trouble-free with exceptions in some
parts of the country. The stock market reacted on Tuesday with a
2.8 percent rise, the largest single-day gain since Feb. 6.

Wednesday's visit to the JSX was Megawati's second this year,
having rung the bell on Jan. 5 to mark the start of 2004 trading.

Commentators saw Megawati's visit as an attempt to highlight
her leadership, during which the stock market had recovered to
pre-crisis levels. The market's performance is a vital element in
gauging investor sentiment.

When Megawati became president in July 2003, the share index
was hovering under 400 points, well below the current level of
more than 700 points.

Megawati said the progress was the result of "a process of
reform and democracy, under which political problems do not
interfere with economic ones."

Megawati said she was confident the presidential election
would be just as smooth as the legislative one and give a further
boost to the economy with investor confidence returning.

Dorodjatun agreed, saying the country could expect more
investments from overseas due to the elections. "In the stock
market, foreign investors are already net buyers, while investors
who previously took a wait-and-see position have begun to
return," he said.

The direct presidential election is scheduled for July 5 and
if the winner fails to secure a clear majority of voters a second
round of voting will take place on Sept. 20.

On Wednesday, the market retained its momentum to close higher
at 774.39, a 0.4 percent increase from Tuesday, on volume of 1.79
billion shares valued at Rp 1.31 trillion (US$152.6 million).

The country's state telecommunication firms Telkom and Indosat
led the rise, gaining Rp 300 and Rp 325 respectively. Telkom
closed at Rp 7,950 while Indosat finished at Rp 4,250.

In the currency market, the rupiah ended flat for the second
consecutive trading day at 8,575 to the greenback, defying trends
in the region that saw most of the currencies fall victims to the
dollar's renewed strength.