BI: NOTHING TO WORRY ABOUT POST ELECTION MONEYMARKET SLUMP

Slump of the moneymarket like IHSG and Rupiah after the Legislative Election was not unusual and it was not something to worry about. This was the opinion of Bank Indonesia Senior Deputy Governor Mirza Adityaswara. “That’s the was with moneymarkets. To go up and down is something very natural. Yesterday before the election there was rush for profit taking, I think there is nothing extraordinaring about it and there is nothing to worry about” Mirza stated on Friday [11/4].

Now the urgent matter was how to maintain Indonesia’s fundamental economy to keep it well-guarded. “The most important thing is how the keep our fundamental economy data in good shape, trade balance in February scoring surplus. Hopefully it would be surplus by March. Inflation normally cools down in April when harvest is good. So there is nothing to worry about,” Mirza said.

According to Mirza, today marketplayers were waiting for certain which of the coalition parties would flank the leading parties. “The moneymarket moves by expectation. Before election the moneymarket goes up, after the election it goes down, so let’s sell. Soon after July 9 things would get clearer. We have made reformations in the election of 1999, 2004 and 2009 and now still continuing.”

So Mirza said, the marketplayers would see whether reformation continue or be accelerated and that’s what made them enthusiastic. Soon they would analyze what coalition was. One thing to be feared was if the ratio figures were bad. But once election was tested, fluctuation was something usual. (SS)

Business New - April 16, 2014