Market Focuses on Jokowi's First 100 Days in Office
27 October 2014 13:52 WIB
TEMPO.CO, Jakarta – Harry Su, chief researcher at Bahana Securities, said that capital market is keeping its eyes on Joko Widodo's first 100 days as president. Investors are hoping that Jokowi and his VP Jusuf Kalla will be able to provide them with a foundation to trust the new government in maintaining the state's political and economic stability.
According to Harry, if the first 100 days proved a success, the stock price index will exceed the 5,300-bps mark until the end of the year.
One policy investors are waiting for is the fuel price hike. Significantly cutting subsidies as soon as possible will nourish the government's fiscal condition. "The higher the raise, the faster the market will recover," Harry told Tempo last week.
In his first 100 days, the market believes Jokowi will be able to "tame" the parliament. A stable politics, he said, is a major requirement to keep investors in the country.
After the announcement of his cabinet, the market expects Jokowi to immediately strengthen the government coalition. According to Harry, the larger the coalition in parliament, the better it will help strengthen Jokowi's policies.
FAIZ NASHRILLAH
