The increase in the share price index at the opening of stock trading on Thursday showed a recovery in confidence in the Indonesian economic situation.
The Jakarta Composite Index (JCII) rebounded on Thursday after a slight decline the previous two days amid demonstrations against the results of the 2019 presidential election.
The stock price index is one indicator of investor confidence in economic conditions. A number of things determine the index movement, one of which is political stability.
The economic impact of the riots has been felt at the macro level, but those who suffered the most were ordinary people, traders at Tanah Abang Market, Central Jakarta, and other small traders because their business locations were close to places where unrest occurred.
At Tanah Abang Market , transactions reach Rp 200 billion a day. The biggest wholesale market has been closed since May 22, 2019 and is not expected to reopen until Saturday. We hope the political temperature will cool down soon.
Moreover, presidential candidate Prabowo Subianto, as seen on YouTube, met his supporters on Wednesday before midnight, after visiting victims of the unrest, and asked them to remain patient, calm and peaceful.
He asked supporters who came from a number of areas to return home and rest and not to use violence. Previously, President Joko “Jokowi” Widodo, accompanied by running mate KH Ma\'ruf Amin, conveyed the same message.
We appreciate the steps taken by Prabowo Subianto and running mate Sandiaga Uno to take their objection to the General Elections Commission\'s vote-counting results to the Constitutional Court. The move was responded to positively by market players, as reflected in the increase in the JCI, which rebounded to the 6,000 level after midday trading on Thursday.
After the entire election process has been completed, the new government must immediately address difficult economic issues. The peaceful atmosphere that has been created should be used to boost economic growth to a level higher than that achieved in the last four years.
At a time when global trade has declined due to the trade war between the United States and China, strengthening the national economy is urgent. We need, among other things, to promote people’s savings to finance development. For this reason, economic productivity must be increased.
We need long-term investment. The real sector remains a priority because the population continues to grow and needs employment. Investment options that need to be encouraged should be those that can guarantee the transfer of technology and are export oriented, and can provide good income for workers to save up and for spending.
With the growing maturity of the community and leaders in democracy, which has been tested on a number of occasions, investor confidence in Indonesia will certainly increase.