JAKARTA (Yosefardi) – Investors sold off local stocks this morning on concern over the stability of new government and a set back of democracy in the country.
Investors respond negatively the decision made by lawmakers last night to vote for indirect election of governors, regents and mayors by members of regional House of Representatives (DPRD).
At 9.38 am Jakarta time, composite index of the Indonesia Stock Exchange (IDX) dropped 1.3% to 5133, while regional markets’ falls also added to negative sentiment in local bourse.
Adaro Energy lost 3.53%, Bank Negara Indonesia fell 3.9%, Bank Mandiri dropped 3.8%, Bumi Serpong Damai shed 3.36%, and Wijaya Karya lost 4.4%.