Apindo About The JCI Drops: The Government Must Be Able To Give A Signal That Builds Optimism

Photo: Karisa Aurelia Tukan/VOI

JAKARTA - The Indonesian Employers' Association (Apindo) has opened its voice regarding the drop in the Composite Stock Price Index (JCI) which decreased by more than 6 percent in the first session of stock trading.

Apindo's Head of Manpower Bob Azam asked the government to strive to maintain positive sentiment in order to restore the investment climate in Indonesia, as reflected in the JCI which had fallen sharply.

Bob said that the positive sentiment is expected to be able to rebuild investor optimism to invest in Indonesia, which in turn boosts people's purchasing power.

"So, it is hoped that the government can continue to provide signals that build optimism, especially how to restore purchasing power. That must be given a signal," Bob told reporters in the Tebet area, South Jakarta, Wednesday, March 19.

According to Bob, yesterday's fall in the JCI which also had made the Indonesian Stock Exchange (IDX) authorities temporarily stop trading.

He also did not deny that the sharp decline was caused by the slump in people's purchasing power which is now also experienced in the domestic economy.

On the other hand, Bob also denied that the decline was partly due to the turmoil of domestic political issues, including the government's plan to revise the TNI Law.

"But, basically (the government) must give positive sentiment to our economy in the future. What are the government's efforts to build people's purchasing power again," he said.

According to Bob, investors are reluctant to invest if the market situation in the country is not as conducive as it is today.

"Because it is impossible for an investment to enter a market situation that continues to fall," he said.

To note, stock trading in the first session on the IDX on Tuesday, March 18, had temporarily stopped in the middle of the road due to a 5 percent drop. Therefore, the IDX immediately traded the bus stop.

Trading stop itself is a temporary suspension or suspension of stock trading because the JCI has decreased to a certain extent.

JCI in trading Tuesday, March 18, at 11.19.31 p.m. Jakarta Automated Trading System (JATS) dropped 325.03 or 5.02 percent to 6.146.91. The decline was quite sharp compared to the previous closure at the level of 6.471.95.