IDX Calls The 2024 Election Has No Significant Impact On The Stock Market

Illustration (Photo: Doc. Antara)

SOLO - Indonesia Stock Exchange (IDX) said that the implementation of elections usually has no significant impact on the stock market in general.

Head of Central Java II IDX M Wira Adibrata said the condition of the stock market in Indonesia was more conducive than a number of neighboring countries.

According to him, this condition cannot be separated from the implementation of elections in Indonesia which will take place more conducively.

"Compared to neighboring countries, such as in Malaysia, which had a chaos, Myanmar, which was a sustainable and long-term demonstration. This disrupts economic stability," said Wira, quoted from Antara, Thursday, August 31.

However, he continued, if you look at the previous election, there will actually be an increase in transactions after the presidential inauguration.

"Pascapemilu, there are several sectors that have experienced an increase, but some have been quiet. Look at the political conditions. After the inauguration, the average stock will increase," he said.

Meanwhile, he said, the sector that supports the performance of the sectoral index on the IDX during the election period is not the same.

Seeing its history in the 2014 election, the main supporter of sectoral index performance on the IDX was property, while in 2019 the financing sector.

"Each year is different from the support, this shows that no special sector increases during elections. It can be concluded that elections are not the main driving factor of the market because the driving factors are varied," he said.

He gave an example that if the election was held last month, the coal sector would be seen as contributing greatly.

"This is not because one of the candidates has a mining company, but because the price of coal and world oil is rising so that companies engaged in the field are projected to experience great profits. Investors are hunting for stocks in the sector. As a result, prices are rising and become the support for the rise of the JCI," he concluded.